Distributor Tech Data has announced its financial results for the fourth quarter ended January 31st 2016.
The firm reported a record Q4 and saw net sales of $7.5 billion, an increase of two per cent compared to the prior-year quarter.
On a constant currency basis, and excluding from the prior period net sales generated in Chile, Peru and Uruguay (“exited operations”) due to the Company’s previously announced exit from those countries, net sales increased 11 per cent.
In Europe, net sales were $4.8 billion (64 per cent of worldwide net sales), essentially flat compared to the prior-year quarter. On a constant currency basis, net sales grew approximately 11 per cent.
Tech Data also reported gross profit of $354.6 million, or 4.74 per cent of net sales, compared to $372.3 million, or 5.07 per cent of net sales in the prior-year quarter.
“Our fourth-quarter results marked a strong finish to an excellent fiscal year for Tech Data. Building upon the positive momentum of the first nine months, our teams in both regions executed well in Q4, delivering higher-than-expected sales and record fourth-quarter non-GAAP earnings per share,” said Robert M. Dutkowsky, Tech Data’s chief executive officer.
“At the beginning of the fiscal year, we set out to optimise our operations and leverage our infrastructure by aligning our resources with more strategic, higher-growth areas.
“This focus enabled us to achieve all of our aspirational financial objectives in fiscal 2016. We gained share in selected markets, improved non-GAAP operating and net income, and grew non-GAAP earnings per share by 16 percent to the highest level in our company’s history, despite experiencing significant foreign currency headwinds throughout the year.”
He continued: “Additionally, we delivered a return on invested capital of 13 percent in fiscal 2016 – a year-over-year improvement of 200 basis points.
“We also generated $189 million of operating cash flow and returned $147 million to shareholders through share repurchases, bringing our cumulative share repurchases to $1.3 billion, or nearly 46 per cent of total shares issued.
Dutkowsy concluded: Tech Data’s strong fiscal 2016 performance validates our strategy and firmly positions us to leverage new opportunities in the evolving IT marketplace on behalf of our customers, vendor partners, shareholders, and employees.”