Exclusive Networks has announced impressive sales growth for the fiscal year 2023, with gross sales reaching €5.1 billion, marking a substantial 14% increase, while revenues exceeded €1.5 billion, reflecting a rise of over 6%.
The company's net margin also saw significant growth, expanding by 14% to €468 million, primarily attributed to strong vendor relationships and strategic market expansion initiatives.
A notable shift in Exclusive Networks' sales mix has been observed, with a greater emphasis on software and support & maintenance services. Software sales accounted for 49% of total sales, while support & maintenance increased to 26%, indicating a growing segment within the distributor's portfolio. Conversely, hardware sales declined slightly to 25% of total sales.
Exclusive Networks' cloud-based business has emerged as a substantial contributor, representing 32% of the group's revenue. Additionally, recent acquisitions, including Ingecom and Consigas, have contributed positively to the company's growth, accounting for 0.8% of growth in 2023.
CEO Jesper Trolle highlighted the strategic significance of acquisitions, stating, "Acquisitions remain an important growth lever for us, and we made two acquisitions in 2023 – Ingecom and Consigas – which are an excellent strategic fit and progressing well."
The EMEA region continues to serve as Exclusive's largest market, significantly contributing to its sales performance. The company's profitability has seen a notable increase, with adjusted EBIT rising by 19% to €191 million.
Looking ahead, Exclusive Networks anticipates continued growth for fiscal year 2024, with a projected growth rate of 10-12%. The company expects its net margin to range between €500 million and €515 million, with adjusted EBIT forecasted to be between €200 million and €210 million, indicating a strong performance and robust free cash flow outlook for the coming year.
