Ingram Micro says it saw a “solid” second quarter despite experiencing a $1bn-plus annual drop in sales, partly down to the ongoing pandemic.
For the quarter ended 27 June, Ingram Micro said it delivered “solid results with a strong increase in profitability” led by “robust performance” in the Technology Solutions and Commerce & Lifecycle Services business segments.
Worldwide quarterly sales were $10.48bn with a gross profit of $821m, or 7.83% of sales. At the same time last year, Ingram reported sales of $11.53bn and a gross profit of $809m.
The operating profit jumped from $156m to $206m, and the net profit stood at $142m.
“The company continued to deliver stronger profitability based on a better mix of higher margin sales, including solutions addressing requirements for work-from-home IT needs, which led to continued gross margin expansion,” said the Chinese-owned distributor.
The company said it had seen a decrease in demand for “certain services and Advanced Solutions offerings during the second quarter”, related to the pandemic. But this was partly offset
by the “strength” in Technology Solutions and e-commerce solutions demand across multiple categories and geographies, it said.
But, it warned: “While profitability has been strong during the first half of fiscal 2020, the shutdown of many businesses around the world could have a negative impact on the company’s financial performance through the remainder of the fiscal year.”
