EQS-News: Bechtle AG / Key word(s): Quarterly / Interim Statement/9 Month figures
Bechtle Continues to Record Profitable Growth in Third Quarter
10.11.2023 / 07:30 CET/CEST
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Bechtle Continues to Record Profitable Growth in Third Quarter

• Business volume up 6.0
  per
  cent to €1.91
  billion
• EBT increases by 6.4
  per
  cent to €93.9
  million
• EBT margin climbs to 6.3
  per
  cent
• Operating cash flow significantly improved

Neckarsulm, 10 November 2023 – In the third quarter of 2023, Bechtle
AG continued to grow and significantly increased its profitability. The business volume increased by 6.0
per
cent to €1,911.5
million. One of the areas that again performed very well was the software business, though according to IFRS
15, it may only be reported as revenue in the amount of the margin. Therefore, the revenue only increased by 1.0
per
cent to €1,479.2
million. Earnings before taxes (EBT) increased by a disproportionately high rate of 6.4
per
cent to €93.9
million. The EBT margin underwent a year-on-year increase from 6.0
per
cent to 6.3
per
cent. As of 30
September
2023, Bechtle had 14,840
employees, a year-on-year increase of 1.051.

In the third quarter, the incoming orders of Germany's largest IT system house saw an excellent increase of 18.3
percent.“Although our medium-sized customers, in particular, are still rather reluctant to invest, we are able to compensate this situation by means of the positive performance of our software and service business as well as the stable demand of our large customers and public-sector clients. Moreover, the trend observable in incoming orders supports our positive outlook for the coming months”, says Dr. Thomas Olemotz, Chairman of the Executive Board of Bechtle
AG.

Digitisation Projects Drive Growth

In the IT System House & Managed Services segment, the business volume increased by 10.8
per
cent, with a significantly growing share of software and service projects. The revenue underwent almost entirely organic growth of 5.8
per
cent to €996.2
million. All in all, the demand of large customers and public-sector clients remained high. Especially complex digitisation projects for the transformation of IT architectures are driving the system house business. This is also obvious from the earnings: EBIT increased by 13.8
per
cent to €66.3
million, and the EBIT margin went up from 6.2
per
cent to 6.7
per
cent.

E-Commerce Affected by Reluctance to Invest

The business volume in the IT E-Commerce segment receded by 3.5
per
cent, and the revenue declined by 7.5
per
cent. Especially medium-sized customers are still postponing projects involving the renewal of their conventional IT infrastructure. The high investments made during the COVID-19 pandemic, the still tense macroeconomic situation, and the great uncertainty among customers with regard to the further economic development are curbing the demand. Although EBIT dropped by 3.3
per
cent, the EBIT margin increased to 6.2
per
cent (prior year: 6.0
per
cent).

Access to Qualified Employees via Acquisitions

Above all due to the acquisition of businesses, the headcount at the more than 100 locations throughout Europe increased by 7.6
per
cent as of 30
September. Without acquisitions, the headcount increase would have amounted to 3.9
per
cent. As of the training start in September, Bechtle proudly achieved a new record of 299 young people who embarked on apprenticeships and integrated degree programmes. In total, Bechtle currently has 865 trainees.

Operating Cash Flow Significantly Improved

In the first nine months of 2023, the cash flow from operating activities amounted to €190.2
million, much more than in the prior year (-€230.7
million). Bechtle achieved significant improvements, especially with regard to the inventories and trade receivables. At €225.4
million, the total liquidity remains at a very comfortable level that enables the financing of further organic growth and acquisitions.

Annual Forecast Confirmed

The company's performance in the first nine months of 2023 was fully in line with our expectations for the year as a whole. We expect large customers and public-sector clients to continue to invest intensively in IT solutions. The demand among medium-sized businesses is expected to go up again as soon as the mood in this customer segment improves. Bechtle remains optimistic with regard to the last quarter. Therefore, we confirm the forecast we had published in March: In the year as a whole, we intend to increase our revenue and earnings significantly and keep the margin more or less at the level of the prior year.“Although we currently still lack positive economic impulses spanning all business segments, we are ready to accompany our customers in all aspects of the digital transformation. Our acquisitions in recent months have further strengthened our market position and our competitive position in Europe. I am therefore convinced that, despite the challenging economic framework conditions that exist at the moment, we will continue to grow and gain market shares”, says Dr.
Thomas Olemotz.

Bechtle KPIs for the Third Quarter and Nine-Month Period of 2023

1 Figures adjusted

2 Including time deposits and securities

***

The quarterly statement for the third quarter of 2023 is available for download at bechtle/reports .

About Bechtle:

Bechtle has more than 85 IT system houses that enable the company to be close to its customers. With IT
E-Commerce companies in 14 countries, Bechtle is one of Europe's leading IT
enterprises. Moreover, Bechtle boasts a worldwide network of partners that caters to the needs of customers that operate around the globe.

Founded in 1983, the Bechtle Group is headquartered in Neckarsulm, Germany, and currently has more than 14,800 employees. We support our 70,000+ customers from the fields of industry and trade, the public sector and the financial market on their digital transformation journey and offer a comprehensive, cross-vendor portfolio of IT infrastructure and IT operation solutions. Bechtle is listed in the MDAX and TecDAX indexes. In 2022, its revenue amounted to €6.03
billion. For more information, see bechtle.

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