Growth in a fast-paced distribution business
In the six months since Synnex merged with Tech Data to form TD Synnex, the world’s largest IT retailer, the retail industry has seen rapid change as the impact of the COVID-19 pandemic 19 subsides, the “great resignation” of employees leaving to find better paid jobs. continues, supply chain shortages increase and Russia goes to war with Ukraine.
Despite all these changes, the IT industry has continued to thrive, as shown in TD Synnex’s first quarter fiscal 2022 financial report released on Thursday. For the quarter, which ended Feb. 28, the retailer reported revenue of $15.5 billion, up 1.5% from the combined revenue of the two traditional retailers for the same period ago. a year. And while TD Synnex operating profit fell 12.0% from a year ago, non-GAAP operating profit increased 13.9% and adjusted EBITDA increased 13.3%. %.
TD Synnex CEO Rich Hume told CRN that results were better than expected, not just for the quarter, but for the new company’s first six months of operation, despite a competitive distribution environment. “As we look back at the first six months of the merger and the combined company, the teams are performing quite well and serving customers and suppliers very positively,” Hume said. “So a very good result, and we are proud of what we have achieved in the first six months of the combined company.”
Hume said supply chain issues, ongoing COVID-19 surges and talent shortages remain issues for TD Synnex. But these are issues that affect every business in every industry, giving a company like TD Synnex the opportunity to shine in managing them and continue to grow. “As we look to the future, we love the games we run and believe we will continue to bring good value to our customers and vendors,” he said.
There are many changes happening in IT distribution, and TD Synnex is taking advantage of these changes to continue to grow its business. Here’s what Hume had to say.