Global distributor TD Synnex has reported a substantial decrease in sales in the first quarter, but still managed to turn in a small increase in profit.
For the three months ended 29 February, 2024, sales fell almost 8% to $14 billion. “We generated strong results in our fiscal first quarter, driven by our expansive portfolio and an improving IT demand environment. This resulted in record margins, EPS at the upper end of our expectations, healthy free cash flow, and robust capital returned to shareholders,” maintained Rich Hume, CEO of TD Synnex.
Gross profit crept up 0.2% to $1.006 billion, with a gross margin edging up from 6.63% to 7.2%.
The operating income was $303m, compared to $298m last time, representing a 1.5% increase. The operating margin was 2.2%, compared to 2% last year.
The group net income went up from $167m to $172m, a rise of 3.1%.
In Europe, revenue slumped from $5.5 billion to $5.1 billion – a decrease of 7.3%. But the operating income was $108m, up from $88m.
The European operating margin was 2.1% - up from the previous 1.6%.
