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Tech Data reports growth ahead of targets

Tech Data net sales in its Q4 ending Jan 31 2018 were $11.1 billion, an increase of 49% compared to the prior-year quarter. The increase in net sales is primarily due to the addition of the Technology Solutions business acquired from Avnet, Inc. in February 2017

On a constant currency basis, net sales increased 40% - the Americas grew to $4.3bn (39% of worldwide net sales), an increase of 59% compared to the prior-year quarter. In Europe, net sales were $6.5bn (58% of worldwide net sales), an increase of 37% compared to the prior-year quarter.

Gross profit was $616.9m, an increase of $245.8m, up 66% compared to the prior-year quarter. In Europe, operating income was $100.4m, or 1.55% of net sales, compared to $66.7m, or 1.41% of net sales in the prior-year quarter.

“Our strong fourth-quarter performance completes a historic and transformational year for Tech Data,” said Robert M. Dutkowsky, chairman and chief executive officer. “During fiscal 2018, we closed the acquisition of Avnet’s Technology Solutions business and introduced the new Tech Data – a global company that is redefining technology distribution with a unique end-to-end product and services portfolio and highly specialized skills. Fiscal 2018 was also a year of significant strategic and financial progress, posting the highest sales, non-GAAP earnings and cash flow from operations in our history and revealing the enhanced earnings power and strong cash flow profile of the new Tech Data. This strong financial performance enabled us to pay down $850 million of debt and attain our post-acquisition target leverage ratio well ahead of our 18 to 24-month plan.”