Tech Data posted a loss of A$847,000 for 2020 in Australia and New Zealand, cutting down last year’s searing A$7.7 million loss by 89 per cent.
The local arm of the global distributor also saw its regional revenue grow by 7.7 per cent from A$284 million to A$304 million for the year ended 31 January 2021.
Broken down, Tech Data gained from the COVID-19 pandemic-driven demand for remote working solutions, with its hardware sales growing 7.7 per cent from A$272 million to A$293 million.
Meanwhile, its sales of agency services grew marginally by 1.8 per cent, from A$5.6 million to A$5.7 million, while services sales from principal arrangements fell from A$5.5 million to A$4.3 million, a decline of 21 per cent.
During the period, Tech Data saw its cost of sales rise from A$255 million to A$272 million. However, at the same time, its tax bill for the period saw it receive a benefit of A$24,000 after paying A$3.6 million tax the period prior.
Notably, Tech Data A/NZ’s employee benefits fell from A$1.6 million to A$1.2 million as ‘key management personnel’ remuneration reached over A$1 million, growing by 46 per cent year-to-year.
Also notable was the decline of Tech Data’s cash in the bank, which sat at just A$156,000, compared to last year’s A$3.3 million.
The year has been a big one for Tech Data both globally and locally. Following last year’s results, Tech Data Australia and New Zealand regional country manager Wendy O’Keeffe stepped down.
Her replacement, Andy Berry, now vice president and country general manager for A/NZ, recently told ARN he wants to bring the ‘full power’ of the distributor to the local market.
Globally, the US-based distributor is in the process of merging with fellow global IT distributor Synnex Corporation as part of a US$7.2 billion deal.
As Tech Data’s US$5.4 billion acquisition by affiliates of private equity firm Apollo Global Management reached completion in June last year, the distributor unveiled plans to invest around US$750 million in digital transformation initiatives over the next five years.
It now also plans to launch Tech Data Capital, a captive finance company that offers leasing and financing for businesses for its technology solutions, in the Asia Pacific region next year.