Global technology distributor Westcon-Comstor saw strong financial growth in its latest half-year results, driven by expansion in its cybersecurity business and software services.
The distributor's earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 16.5 per cent to US$69.5 million in the six months to 31 August 2024.
Gross profit increased 6.1 per cent to US$216.1 million on revenue of US$1.8 billion, with gross margins climbing to 12.0 per cent from 11.0 per cent in the same period last year.
Cybersecurity emerged as a key growth driver, with revenue in this segment jumping 22.2 per cent to US$860.0 million.
This growth reflects increasing demand for multi-vendor security solutions as organisations face more complex digital threats.
"Through our data-driven approach, expertise in high-growth technology domains and track record for innovation, we are uniquely placed to add strategic value to channel partners and vendors," David Grant, chief executive of Westcon-Comstor said.
The company's strategic shift towards software and subscription-based services showed strong momentum. Software sales grew 17.9 per cent, now representing 49 per cent of total revenue, up from 40 per cent in the previous year.
Recent innovations, including the company's 3D Lab, AWS Marketplace and Intelligent Demand programs, have strengthened its market position across Europe, Middle East and Africa (EMEA) and Asia-Pacific (APAC) regions.
The positive results came despite challenging global economic conditions, Grant said.
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