Bechtle delivers impressive Q1 performance

• Revenue Growls by 6.8 percent to €1.38 billion
• EBT up 21.4 per cent to €74.0 million
• Forecast for 2022 as a whole confirmed

Neckarsulm, 12 May 2022 – Bechtle AG has made an impressive start to the 2022 fiscal year. Despite the ongoing supply bottlenecks, the IT company was able to step up its revenue and earnings. In the first three months, the revenue underwent a significant increase of 6.8 per cent to €1,379.2 million. Business volume even grew by almost 8 per cent to €1,629.2 million. Earnings before taxes (EBT) went up by 21.4 per cent to €74.0 million. The EBT margin thus improved from 4.7 per cent to 5.4 per cent. As of 31 March 2022, Bechtle had 12,966 employees, a year-on-year increase of 660.

The companies abroad achieved particularly strong revenue growth of 13.5 per cent. In Germany, Bechtle was able to push up its revenue by 3.0 per cent. Organically, the group’s revenue grew by 6.4 per cent. The significant earnings increase was also supported by the fact that unlike the corresponding prior-year period, this year’s first quarter hardly saw any encumbering special effects from the recognition of risk provisions. “At present, the framework conditions are still challenging. Besides the persistent supply problems, the macroeconomic development is also overshadowed by the war in Ukraine. Against this backdrop, the figures achieved in the first quarter demonstrate our employees’ superb commitment and a remarkably resilient business model,” explains Dr. Thomas Olemotz, Chairman of the Executive Board of Bechtle AG.

Disproportionately high earnings growth in system house segment

In the IT System House & Managed Services segment, Bechtle increased its revenue in the first three months of 2022 by 1.3 per cent to €843.0 million. Bechtle managed to further expand the service share in the segment. After various coronavirus pandemic restrictions were lifted, it was again possible to perform more on-site services for customers. Despite the higher cost basis, EBIT thus increased by 14.4 per cent to €47.0 million. The EBIT margin moved up from 4.9 per cent to 5.6 per cent.

Growth driver: e-commerce

In the IT E-Commerce segment, the revenue in the first quarter of 2022 grew by an excellent 16.7 per cent to €536.2 million. The companies abroad recorded an outstanding increase of 18.3 per cent, driven by the high growth in France, the UK, Ireland, Spain, Portugal, Poland and Hungary. In Germany, too, strong revenue growth of 11.8 per cent was achieved. EBIT went up 34.5 per cent to €28.3 million. As a result, the margin went up from 4.6 per cent to 5.3 per cent. Apart from volume effects, the figure also benefited from a constantly low cost structure.

Cash flow encumbered by supply problems

In the first quarter of 2022, Bechtle’s cash flow from operating activities amounted to minus €127.1 million (prior year: €20.6 million), due especially to the high level of inventories. Most of the inventories are still project-specific goods that have not yet been shipped because of missing components of overall orders. The free cash flow dropped from €11.8 million to minus €140.7 million. The total liquidity remains at a very comfortable level of €267.7 million.

Forecast confirmed

Bechtle is optimistic with regard to the rest of this fiscal year and confirms its forecast of a significant revenue and earnings increase along with a stable EBT margin. “The figures of the first quarter are an excellent basis for the current fiscal year. Though we need to be prepared for continued supply bottlenecks for quite some time, we hope that the supply situation will gradually relax from the second half of the year, resulting in improved growth dynamics as the year goes on. Uncertainties remain very high, but we stick to our positive outlook,” says Dr. Thomas Olemotz.

Bechtle KPIs for the first quarter of 2022

¹Prior-year value adjusted

²Adapted to share split

³Including time deposits and securities