Bechtle Affirms Forecast for the Year As a Whole

• Business volume up by 3.4 per cent
• Strong software business as a key driver
• EBT increases by 2.8 per cent to €82.0 million
• Operating cash flow of €45.3 million clearly above previous year
• Outlook for the year as a whole remains optimistic

Neckarsulm, 8 May 2024 - Bechtle AG delivered solid performance in the first quarter of 2024. Despite the high comparative figures from the previous year, the business volume increased by 3.4 per cent to €1,951.0 million. The software business was the main growth driver. Accordingly, revenue fell slightly by 2.3 per cent. Due mainly to the positive development of gross earnings, earnings before taxes (EBT) increased by 2.8 per cent to €82.0 million. The EBT margin thus rose from 5.2 per cent to 5.5 per cent.

"We have made a solid start to our fiscal year and see the signs of increasing growth momentum in the coming quarters", says Dr. Thomas Olemotz, Chairman of the Executive Board of Bechtle AG. In Germany especially, the delayed release of the budget has led to a postponement of government contracts. However, this should resolve itself as the year progresses. In addition, our SME customers in particular continue to be reluctant to invest, although we were able to compensate for this to some extent thanks to our broad international presence. The business volume has developed very differently across Europe. While Bechtle was able to grow internationally by 14.3 per cent, the business volume in Germany declined by 4.1 per cent.

Growth areas for the future

The software business showed particularly strong growth in the first quarter. This development was driven in particular by major software projects in January. Momentum slowed over the course of the quarter. Strategically, Bechtle is focussing on the expansion of multi-cloud and managed cloud services as well as cybersecurity and artificial intelligence. "The digital transformation is a strong business driver for us - in the public sector and in industry alike. We believe that our portfolio of solutions puts us in an excellent position here", says Dr. Thomas Olemotz.

Pleasing earnings performance

With an increase of 4.2 per cent, gross earnings laid the foundation for the pleasing earnings growth. In particular, the development of material costs had a positive impact due to the high proportion of software. This more than compensated for the increases in personnel expenses as well as depreciation and amortisation. In addition to an increase in EBT of 2.8 per cent, the margin also climbed.

Moderate increase in employees

The number of employees at more than 120 locations across Europe increased by 921 people or 6.4 per cent as of 31 March 2024. Almost 60 per cent of the new colleagues came to Bechtle via acquisitions. Without acquisitions, the increase in the number of employees would have been just 2.6 per cent. The rather restrained pace of staff recruitment is still an expression of entrepreneurial prudence in view of the challenging economic conditions.

Operating cash flow with pleasing development

Operating cash flow in the first quarter of 2024 was €45.3 million (previous year: -€20.2 million) and thus improved by €65.6 million. The reduction in trade receivables remained at a very high level. The lower cash outflow for inventories and trade payables also had a positive effect in the reporting period. At €27.1 million, free cash flow also showed a remarkable positive trend (previous year: -€91.1 million).

Executive Board affirms forecast and positive outlook

The Executive Board remains positive about the prospects for Bechtle AG's business development in the current year. The digital transformation in general and a variety of technological topics such as security or the development and expansion of the multi-cloud are key drivers in the IT market. Demand for hardware should also increase again in the second half of the year, not least as a result of impending technological advances. In addition to the increasingly urgent need to replace outdated infrastructures, the discontinuation of support for Windows 10 is also likely to boost demand. Overall, despite the challenging conditions for 2024, the Executive Board once again anticipates a disproportionately positive business performance compared to the market as a whole. The business volume, revenue and earnings are expected to undergo a significant increase, and the EBT margin is to remain at a level similar to that of the prior year. "The first quarter was a good start, but not yet a benchmark for the year as a whole in terms of our aspirations. We want to and can pick up speed over the course of the year. The second half of the year will be decisive for our success", says Dr. Thomas Olemotz.

Bechtle key indicators 1st quarter 2024

¹ Figure adjusted

² Including time deposits and securities

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The interim statement for the first quarter of 2024 is available for download at .

About Bechtle:

With over 100 IT system houses, Bechtle is close to its customers and, with IT E-Commerce companies in 14 countries, is one of the leading IT companies in Europe. Moreover, Bechtle boasts a worldwide network of partners that caters to the needs of customers that operate around the globe.

Founded in 1983, the Bechtle Group, headquartered in Neckarsulm, Germany, currently employs over 15,000 people. We support more than 70,000 customers from trade and industry, the public sector and the financial market on their digital transformation journey and offer a comprehensive, cross-vendor portfolio of IT infrastructure and IT operation solutions. Bechtle is listed in the MDAX and TecDAX indexes. In 2023, revenue totalled €6.42 billion. More at:

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