Tech Data has posted a loss of A$7.7 million for 2019 in Australia and New Zealand.
The recently acquired distributor giant made revenue of A$284 million for the year ended January 31, 2020, but its costs of sales ate into almost 90 per cent of this figure, reaching A$255 million.
Broken down, 61 per cent of Tech Data’s revenue came from sales of hardware and software goods, hitting A$171 million.
Meanwhile, the sale of services from specific vendors formed a third of the revenue pie, hitting A$95 million, as the sale of private cloud hosting and services to customers accounted for A$14 million, or 5 per cent.
The results reflected Tech Data’s tax bill for the 2019 Australian financial year, which amounted to A$3.6 million, plus A$1.6 million in staff salaries and benefits.
The figures also were notable for reflecting Tech Data’s change of financial year from its previous reporting period, whereby it ended its year on 31 June.
As such, the comparative figures outlined in the latest locally lodged financial report only counted the seven months preceding January 31, 2019, whereby the distributor made A$171 million in revenue and A$160,000 profit after tax.
Globally, Tech Data has had a mammoth year, when affiliates of private equity firm Apollo Global Management acquired it for US$5.4 billion.
Now the deal has completed, the distributor recently revealed plans to invest in state-of-the-art automation, platforms and analytics aimed at allowing it to be more agile and responsive to the rapidly evolving needs of its channel partners.
Last year, Tech Data waved goodbye to one of its most prominent local figureheads, Michael Costigan, who exited the distributor after almost two decades.
The distributor giant confirmed to ARN at the time that it had culled Costigan’s role of vice president of marketing, education and vendor management as part of a region-wide restructure.