Investors who backed Exclusive Networks when it went public in September 2021 will be feeling rather smug after the distributor delivered a solid set of numbers for its full year 2023.
The distie has been able to surf the wave of continued demand for security solutions and described 2023 as “record breaking”.
For the 12 months to 31 December 2023, Exclusive Networks reported a 14% climb in gross sales, coming in at €5.145bn. Those numbers included an increasing contribution from software support and maintenance sales. Hardware’s contribution decreased to 25%, while cloud-based business now accounts for 32%, which is in line with the firm’s digital growth strategy.
Net margin increased by 14% to hit €468m in full-year 2023, driven by a strong geographical mix and deal sizes, according to the firm. Adjusted net income rose by 8% to reach €108m.
One of the other key metrics that Exclusive prides itself on is its relationship with vendors and resellers, with retention rates remaining above 100% for the year.
EMEA delivered gross sales of €4.036m, up 14% year on year, with the region benefiting from decent demand levels. Profitability increased significantly, with adjusted EBIT rising to €191m, which was a 19% improvement.
The fourth quarter saw the distributor improve gross sales by 9% year on year to €1.585m. Most of that business was driven by activities with existing vendors, but portfolio expansion did play a small role in delivering growth.
Jesper Trolle, CEO of Exclusive Networks, said the distributor had a strong year and was able to surpass its financial guidance.
“This outcome reflects the strength, diversification and resilience of our model. Our reputation as a trusted partner is valued by both vendors and customers, serving as the foundation of our ongoing growth”
Jesper Trolle, Exclusive Networks
“We are thrilled with the profitability of the year, which exceeded the upper range forecasted in August 2023. Our teams demonstrated resilience and adaptability in sustaining growth momentum following a remarkable performance in FY22,” he said.
“This outcome reflects the strength, diversification and resilience of our model. Our reputation as a trusted partner is valued by both vendors and customers, serving as the foundation of our ongoing growth,” he added.
During the year, the channel player sealed a couple of acquisitions, Ingecom and Consigas, which Trolle said were progressing well, and mergers and acquisitions remained “an important growth lever for us”.
The other area that has supported growth has been to extend existing relationships with vendors to take them into fresh geographies. Already this year, there has been evidence of Exclusive continuing to follow that strategy.
Like other distributors in the security sector, the year has also started with Exclusive adding some fresh names to its portfolio, recently signing SentinelOne.
Although macroeconomic conditions remain challenging, the firm indicated that it is forecasting gross sales growth of between 10% and 12% for 2024 and net margin around the €500m to 515m mark.
“Looking ahead to FY24, we remain optimistic about our prospects, while the environment is expected to remain soft in the first half. The continued emphasis on cyber security by CIOs, combined with our unique business model and established growth strategies, positions us for further advancement in the coming year,” said Trolle.
