Bechtle Remains on Track to Success

• Revenue in Q2 up 14.5 per cent to €1.42 billion
• EBT increases to €88.5 million
• Forecast for FY2022 confirmed

Neckarsulm, 11 August 2022 – In the second quarter of 2022, Bechtle AG continued to perform very well. Despite the ongoing supply bottlenecks and the tense macroeconomic situation, the IT company was able to considerably step up its revenue and earnings. From April to June, the revenue underwent a substantial increase of 14.5 per cent to €1,417.6 million. The business volume recorded even higher growth of 16.0 per cent to €1,662.7 million. Earnings before taxes (EBT) went up 9.0 per cent to €88.5 million. Thus, the positive special effects from the corresponding prior-year period in the amount of more than €9 million were more than compensated for by the strong operating performance. The EBT margin amounted to 6.2 per cent, after 6.6 per cent in the prior year. As of 30 June 2022, Bechtle had 13,199 employees, 778 more than in the corresponding prior-year quarter.

The growth in Germany and abroad was largely balanced. At 16.3 per cent, the international companies recorded slightly higher growth. Year on year, the domestic business performance also improved considerably, reaching 13.4 per cent. Organically, the group’s revenue went up by 13.7 per cent. “In view of the still difficult framework conditions, Bechtle’s extremely strong performance in the second quarter is truly remarkable. Our business model has again proved to be highly resilient and future-proof,” explains Dr. Thomas Olemotz, Chairman of the Executive Board of Bechtle AG.

Very significant Revenue Increase in System House Segment

In the IT System House & Managed Services segment, Bechtle increased its revenue in the second quarter of 2022 by 12.4 per cent to €881.8 million. The organic growth amounted to 11.2 per cent. Due to the positive special effects that had greatly affected the earnings in this segment in the prior year, EBIT only underwent slight overall growth of 0.7 per cent. The EBIT margin was 6.1 per cent. Adjusted by the special effects, the EBIT growth amounted to more than 10 per cent. This is all the more remarkable considering that the costs have largely returned to normal due to much higher travel and vehicle expenses. The main strategic subject areas are standardised and customer-specific managed services for multi-cloud architectures and IT security.

E-Commerce as Growth Driver

In the IT E-Commerce segment, the revenue in the second quarter of 2022 improved by an outstanding 18.1 per cent to €535.8 million. Though the relaxation in the supply chain was limited to individual product groups, the better availability had a very positive effect on our trading business. The business performance was especially good in Germany, but Bechtle also achieved double-figure growth rates abroad. EBIT went up 23.5 per cent to €35.9 million. The margin increased from 6.4 per cent to 6.7 per cent. Earnings benefited especially from price and volume effects.

Cash Flow Encumbered by Supply Problems

In the first six months of 2022, the operating cash flow of Bechtle AG was affected by the difficult framework conditions on the one hand and by the positive business performance on the other hand. Owing to the ongoing supply difficulties, the inventories remain at a high level. Moreover, due to the excellent development of the business volume, trade receivables went up considerably in the second quarter. All in all, this resulted in a cash flow of -€202.4 million (prior year: €47.3 million). In the second quarter, the cash flow from operating activities amounted to -€75.3 million, (prior year: €26.8 million). Thus, the decline in the second quarter was not as great as it had been in the first quarter. Especially the outflow from the increase in inventories could be reduced.

Focus on Education and Training

In the second quarter, Bechtle’s headcount increased by 778 or 6.3 per cent to 13,199. For the first time, Bechtle thus has more than 13,000 colleagues. Apart from recruiting new staff, Bechtle’s HR work has always focused on education and training. Accordingly, Bechtle continually invests in employee certifications, e.g. in the important fields of security and multi-cloud architectures.

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. “Regardless of any potential economic slowdown in the second half of the year, our customers are still willing to invest in the digital transformation. Challenges are likely to persist or even intensify in the remaining part of the year. However, the strong economic basis that Bechtle carved out in the first half of the year strengthens our conviction that we will be able to reach our targets in the full year 2022,” says Dr. Thomas Olemotz.