Bechtle AG Maintains Optimistic Outlook for 2024 Despite Mixed Quarterly Results

Bechtle AG, a key player in the IT sector, reported a mixed set of financial results for the first quarter of 2024. While the company saw an increase of 3.4% in business volume, reaching €1.95 billion, it experienced a slight revenue decline of 2.3%. This was primarily due to a robust performance in the software sector which continues to drive growth, offsetting declines in other areas. Despite the revenue dip, the earnings before taxes (EBT) rose by 2.8% to €82.0 million, enhancing the EBT margin from 5.2% to 5.5%.

Dr. Thomas Olemotz, Chairman of the Executive Board, highlighted the solid start to the fiscal year and expressed confidence in further growth, especially with the upcoming budget releases and resolved government contracts. The company also noted significant differences in performance across regions, with international business growing 14.3%, contrasting a 4.1% fall in Germany.

Bechtle is focusing on expanding its offerings in multi-cloud and managed cloud services, cybersecurity, and artificial intelligence to reinforce its market position. This strategic direction underscores its commitment to riding the wave of digital transformation across both public and private sectors.

Furthermore, the company reported a substantial improvement in operating cash flow, which marked an increase to €45.3 million from a negative €20.2 million in the previous year. This improvement was supported by a reduction in trade receivables and lower cash outflows for inventories and trade payables. The employee count also rose by 921, bolstered by recent acquisitions.

The Executive Board remains positive about the year's outlook, expecting an uptick in hardware demand driven by technological advancements and infrastructure upgrades. Dr. Olemotz noted that the latter part of the year would be crucial for achieving the company's ambitions for 2024.