Bechtle’s UK and international business enjoyed double-digit growth in Q3, despite the giant reseller registering an overall drop in sales and profits.
The Germany-headquartered outfit saw overall business volumes shrink back 1.1% year on year to €1.89bn in the three months to 30 September 2024, with EBT margin also tumbling from 6.3% to 5.2%.
The Neckarsulm-based outfit had prepared the market for the setback in a profit warning last month.
Despite this, Becthle showered praise on its international subsidiaries in Austria, Switzerland, Belgium and the UK, saying they had all “developed very positively”.
In the UK, Bechtle is now a €290m-revenue business, following its acquisitions of ACS, Tangible Benefit and – most recently – Qolcom.
International business volumes rose 10.7%, with organic growth standing at 8.8%.
“We are not satisfied”
In contrast, Becthle’s two most important markets – Germany and France – continued to be “dominated by uncertainty and a reluctance to invest”, it said.
“Overall, we are not satisfied with the third-quarter business development,” CEO Dr Thomas Olemotz stated.
“Our SME customers—especially in our most important markets, France and Germany—remain reluctant to invest, but we are delighted by the growth exhibited by our international companies, which is further confirmation that our European M&A strategy is the right course to take.”
Becthle’s headcount rose by 5.2% to 15,608 year on year, with 70% of net new employees joining through acquisitions.
The beginning of the academic year in September 2024 saw 286 vocational trainees and university students starting their careers at Bechtle. This means a total of 890 young people were in training at the company on 30 September 2024 – more than ever before – Bechtle added.
“In light of earnings development so far this year, coupled with the continuing adverse economic conditions in the third quarter, we no longer expect to achieve the adjusted forecast,” Olemotz said.
“We do, however, still foresee an improvement in business development in the fourth quarter of 2024 backed by our B2G customers.”
