Distribution giant Avnet has hailed the success of its acquisition strategy after posting 22.2 per cent revenue growth for its fiscal second quarter.
Turnover for the quarter to 29 December hit $4.75bn (£2.44bn) as revenue generated from no fewer than seven recent acquisitions bolstered Avnet’s top line. The distributor most recently completed its acquisition of the IT Solutions Division of Acal (CRN, 18 December).
The bottom line also plumped up as net profits for the quarter grew 37.1 per cent to $142.2m.
Most of the growth was delivered by Avnet’s Technology Solutions group, which saw sales rise 46 per cent to $2.27bn. Sales at the Electronics Marketing group hiked 6.2 per cent to $2.48bn.
Roy Vallee, chief executive at Avnet, said: “Our results continue to demonstrate the positive impact that our value-based management strategy, augmented by value-creating acquisitions, is having on our business.
“While sequential sales growth reflected normal seasonal trends, our year-over-year growth of 22 per cent was bolstered by seven value-creating acquisitions that span both operating groups and all three regions.”
Vallee continued: “In addition to the top line growth, we increased year-over-year operating income 27 per cent and, excluding the gain on the sale of assets, increased earnings per share 33 per cent while driving return on capital employed to a record 12.8 per cent.”
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