Datatec has published its audited financial results for the year ended 29 February 2024, revealing a slight increase in revenue and a significant drop in net profit.
The company’s revenue grew 6.1% from $5.14 billion (R94.88 billion) to $5.46 billion (R101.43 billion). However, its net profit declined by approximately 41%.
Datatec reported a net profit of $70.62 million (R1.3 billion) for the 2022/23 financial year. This dropped to $41.53 million (R766 million) in 2023/24.
However, CEO Jens Montanana noted that the company reported strong operational performance, with operating profit growing 15.8% to $862.2 million (R15.9 billion).
“The Group maintained a strong operational performance in the second half of the year to deliver a solid full-year result as global demand continues for our technology solutions and services,” said Montanana.
“We have managed to successfully capture growth opportunities across many markets to deliver improved quality of earnings.”
The company attributed its strong operational performance to “continuing excellent performance” from Westcon International, strong performance from Logicalis International, and improved cash generation from operations, among other things.
To this end, Westcon International’s revenue increased by 1.5% to US$1.25 billion (R23 billion), while earnings before interest, taxes, depreciation, and amortisation grew 31.7%.
“Operationally, Westcon International continues on its growth trajectory, delivering an exceptional performance in FY24,” said Montanana.
“Logicalis International also performed well. However, Logicalis Latin America faced numerous challenges in Argentina and Brazil, which impacted its financial performance.”
Datatec said all the Group’s divisions are expected to deliver strong performance in 2024/25 despite uncertain political and economic challenges in many parts of the world.