Arrow ECS ANZ saw both its revenue and profits slip in Australia during the 12 months ending 31 December last year
The Sydney-headquartered distributor ended 2019 with a final revenue of $300 million, a 12 per cent fall from the year before while profit reduced 30 per cent from $18.3 million to $12.4 million for the year ended 31 December 2019.
Broken down, however, Arrow posted $594.4 million in billings, but this was reduced down by $294.1 million in cost of goods. Although Arrow’s cost of sales fell from $288 million to $255 million, its margin for the year fell by 13 per cent to $48 million.
The balance sheet also revealed that Arrow owed $5.4 million in income tax on its gross profit of $17.8 million. Staffing costs fell by four per cent, from $21.5 million to $20.6 million, while vendor rebates increased notably from $1.9 million to $6.2 million.
The results follow a year of change for Arrow, with its long-serving managing director Nick Verykios leaving the company after more than 15 years running the distributor.
Verykios was replaced by Andrew Assad, while Andrew Vaughan was made finance and operations director and Lisa Stockwell assumed the position of vendor alliance director. The year also saw Arrow's HPE business leader Phil Rettenmaier, jump ship to Westcon-Comstor.
Arrow has been contacted by ARN for comment.