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Major New Zealand distributors hit a sweet spot in a pandemic year

Major New Zealand distributors hit a sweet spot in a pandemic year

Signs of supply chain disruption are evident, but business is good.

Jason Langley (Ingram Micro)

Jason Langley (Ingram Micro)

Credit: Supplied

If you needed any further proof that the ICT industry as a whole rode out the COVID-19 pandemic well, the financial results of major distributors is it.

Distributors are perhaps the bellwether of activity in the industry, as they distributing hardware, software and services, including cloud-based services, locally.

Two of the big players reported their financial results overnight and both reported handsome increases in revenue and profit, despite global supply chain disruptions.

Ingram Micro NZ saw its revenue for the year to 31 December lift from $653.3 million to $701 million. 

Gross profit also went north, from $74.7 million to $79.4 million while net profit before tax rose from $17.1 million to $22.6 million.

Sale of goods continued to dominate over services, according to the accounts, with goods delivering $682.5 million compared with services on $18.5 million.

Inventory on hand at balance date fell from $61 million to $53.4 million while goods in transit nearly doubled, from $4.3 million to $8.3 million.

Ingram Micro NZ subsidiaries include Tech Pacific NZ and Brightpoint NZ.

For the same period, Synnex reported revenues of $198.8 million, up from $159.5 million and a profit before tax of $2.5 million, up from $461,958 in 2019.

Synnex noted the COVID-19 had led to increased demand for the company's products, however long-term uncertainty surrounded the future effects of the pandemic.

In December, US private equity firm Platinum Equity announced it would buy Ingram Micro from Chinese aviation and shipping conglomerate HNA Group for US$7.2 billion.

HNA acquired Ingram in 2016 in a US$6 billion deal.

Synnex is a Taiwanese company.


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