Growth In A Rapidly Changing Distribution Business
In the six months since Synnex and Tech Data merged to form TD Synnex, the world’s largest IT distributor, the distribution business has seen rapid changes as the COVID-19 pandemic impact subsides, the “Great Resignation” of employees leaving to find better paying jobs goes on, supply chain shortages rise, and Russia goes to war with Ukraine.
Through all the changes, the IT industry has continued to flourish, which shows in TD Synnex’s fiscal 2022 first quarter financial report released Thursday. For the quarter, which ended February 28, the distributor reported revenue of $15.5 billion, up 1.5 percent compared to the two legacy distributors’ combined revenue for the same period a year ago. And while operating income for TD Synnex fell 12.0 percent over last year, non-GAAP operating income rose 13.9 percent and adjusted EBITDA rose 13.3 percent.
TD Synnex CEO Rich Hume told CRN the results were better than expected, not only for the quarter but for the first six months the new company has been operating, despite a competitive distribution environment. “When we look at the first six months of the merger and the combined company, the teams are executing quite well and serving customers and vendors in a very positive way,” Hume said. “So, a really good outcome, and we‘re proud of what we accomplished in the first six months of the combined company.”
Hume said supply chain issues, continued COVID-19 flare ups, and talented personnel shortages remain issues for TD Synnex. But they are issues impacting all companies in all industries giving a company like TD Synnex the opportunity to shine by managing them and still grow. “As we look into the future, we like the plays that we‘re running, and we believe that we’ll continue to bring good value to our customers and vendors,” he said.
There’s a lot of change happening in IT distribution, and TD Synnex is taking advantage of that change to continue growing its business. Here’s what Hume had to say.
