Bechtle optimistic for FY 2024

Bechtle optimistic for FY 2024

 

• Business volume up by 0.9 per cent in Q2
• Operative cashflow more than doubled to €141.2 million
• Forecast on par with previous year’s level
• Continuation of European M&A strategy

 

Neckarsulm, 9 August 2024 – In the second quarter of 2024, Bechtle AG's business was more strongly affected by the adverse macroeconomic conditions than at the beginning of the year. Nevertheless, the business volume rose by around 1 per cent to €1,831.5 million. By contrast, revenue fell slightly by 2.3 per cent. Earnings before taxes (EBT) did not reach the very high benchmark figures of the previous year, totalling €83.8 million (previous year: €93.8 million). The EBT margin fell from 6.2 per cent to 5.7 per cent.

 

"We are comparing our second quarter with a very strong previous year. However, there was less demand from SMEs throughout the quarter and particularly in June this year. In addition, public-sector customers in Germany were still being unusually cautious as a result of the lengthy budget debate. But even though the second quarter did not live up to our own expectations, we continue to see very good growth opportunities for Bechtle in the medium and long term," says Dr Thomas Olemotz, CEO, Bechtle AG.
 

Operative cashflow developing strongly

Operative cashflow developed very positively again, totalling €141.2 million in the first half of 2024 (previous year: €65.0 million)—an improvement of €76.2 million. The reduction in trade receivables and inventories remained at a very high level and the lower reduction in trade payables also had a positive effect in the reporting period. At €72.8 million, free cashflow also showed a significant increase (previous year: -€65.8 million).

 

Moderate employee growth

Compared to the previous year, the number of employees at the Bechtle Group's more than 120 locations across Europe had increased by 5.5 per cent as of 30 June 2024. Almost 70 per cent of the 801 new employees came to Bechtle through acquisitions with organic growth totalling just 1.6 per cent. Compared to 31 March 2024, the increase was only 61 employees. Excluding acquisitions, Bechtle even recorded a slight decline compared to the previous quarter. "In view of the economic challenges, we are currently cautious when it comes to expanding our workforce. Our focus is much more on efficiency gains in our internal business processes, which we’d like to achieve through digital transformation and artificial intelligence," explains Dr Thomas Olemotz.

 

Future growth opportunities

To generate stronger growth in the second half of 2024 and beyond, Bechtle sees the replacement cycle for traditional IT infrastructure driven by the end of support for Windows 10 in particular as an opportunity. Moreover, the European NIS2 Directive is driving cybersecurity forward and, with more than 500 specialists, Bechtle is very well positioned in this business segment. In addition, digital transformation, the expansion of multi-cloud and managed cloud services and the use of AI in various fields of application continue to be major business drivers. "SMEs and public sector clients have considerable catching up to do when it comes to modernising their IT. Although investments are currently being postponed, they will come—and Bechtle is well-prepared for them," says Dr Thomas Olemotz.

 

Executive Board adjusts forecast, but remains optimistic

The first half of 2024 was characterised by adverse economic conditions and a high level of uncertainty regarding future macroeconomic developments. This has had a particular impact on the investment behaviour of SME customers who continue to put off projects to modernise outdated traditional IT infrastructures in the workplace. While the Executive Board continues to expect an upturn in the second half of the year, the shortfall compared to the forecast published in March has considerably increased after the first six months. Bechtle accordingly adjusted its forecast for the current fiscal year in mid-July. The Executive Board now expects business volume, revenue, EBT and EBT margin to remain at the previous year's level. In the medium and long term, however, the outlook for Bechtle remains optimistic. The Board has also confirmed the continuation of its European M&A strategy. "The first half of the year was below our expectations, but we have dealt with this by adjusting our forecast for the year as a whole, as already announced. In principle, however, we remain confident about the development of our company. We are excellently positioned in all key IT growth areas and I am convinced that we will benefit from this when the overall economic environment improves along with an increasing willingness to invest in IT. We are also committed to acquiring attractive companies in key European markets as part of our growth strategy," summarises Dr Thomas Olemotz.

 

Bechtle key indicators for the 2nd quarter and 1st half of 2024

    Q2/2024 Q2/2023 +/- H1/2024 H1/2023 +/- Business volume €k 1,831,511 1,815,592 +0.9% 3,782,505 3,701,596 +2.2% Revenue €k 1,474,816 1,509,945 -2.3% 2,978,231 3,048,444 -2.3%   Germany €k 879,427 923,974 -4.8% 1,750,669 1,855,547 -5.7%   International €k 595,389 585,971 +1.6% 1,227,562 1,192,897 +2.9%   IT System House & Managed Services €k 919,518 946,492¹ -2.8% 1,851,856 1,915,182¹ -3.3%   IT E-Commerce €k 555,298 563,453¹ -1.4% 1,126,375 1,133,262¹ -0.6% EBIT €k 84,685 96,122 -11.9% 168,833 177,089 -4.7%   IT System House & Managed Services €k 50,816 65,222¹ -22.1% 105,125 122,986¹ -14.5%   IT E-Commerce €k 33,869 30,900¹ +9.6% 63,708 54,103¹ +17.8% EBIT margin % 5.7 6.4   5.7 5.8   EBT €k 83,837 93,785 -10.6% 165,794 173,479 -4.4% EBT margin % 5.7 6.2   5.6 5.7   Earnings after taxes €k 59,694 65,953 -9.5% 118,197 122,862 -3.8% Earnings per share € 0.48 0.53 -9.5% 0.94 0.98 -3.8% Cash flow from operating activities €k 95,842 85,213   141,172 64,979   Employees (as of 30.06)   15,306 14,505 +5.5%      

¹ Value adjusted

 

		30.06.2024	31.12.2023	+/-
Liquidity2	€k	413,101	465,756	-11.3%
Equity ratio	%	47.5	45.8

² Including time deposits and securities

***

The 2024 half-year report is available for download at bechtle.com/reports.

 

About Bechtle:

With more than 100 system houses and IT e-commerce in 14 countries, Bechtle is one of Europe’s leading IT providers and never more than a stone’s throw away. Bechtle also has a worldwide partner network to fulfil the needs of its customers on every continent. Founded in 1983, the Bechtle Group is headquartered in the southern German town of Neckarsulm and currently employs over 15,000 people.  Over 70,000 customers from the industrial, trade, financial and public sectors rely on Bechtle to drive their digital transformation with a cross-vendor portfolio that spans the whole world of IT infrastructure and operations. Bechtle is listed on the MDAX and TecDAX indexes. In 2023, the company generated a revenue of €6.42 bn. More at: bechtle.com

 

Contact

Investor Relations	Corporate Communications/Press
Martin Link	Sabine Brand
martin.link@bechtle.com	sabine.brand@bechtle.com
Phone: +49 7132 981-4149	Phone: +49 7132 981-4115