Westcon International performance

Westcon International revenue
percentage contribution by geography

Westcon International gross profit
percentage contribution by geography

US$ million	FY24 Reported	FY23 Reported	% Movement	Note reference
Revenue	3 685.2	3 420.6	8	1
Gross profit	403.4	328.7	23	2
Gross margin (%)	*10.9*	9.6
Operating costs	(282.4)	(280.3)	1
EBITDA	121.0	48.4	150	3
EBITDA margin (%)	*3.3*	1.4
Adjusted EBITDA	120.2	95.1	26	4
Adjusted EBITDA margin (%)	*3.3*	2.8
Operating profit	96.2	21.7	343
Operating profit margin (%)	*2.6*	0.6

1	Westcon International’s revenue increased due to strong demand for network infrastructures and cyber security solutions. In constant currency, revenue improved by 7.6%.

Westcon International’s gross profit increased largely due to a return to more stable foreign exchange rates compared to FY23 and the adoption of cash flow hedge accounting. In FY23, the rapid strengthening of the US Dollar against the Euro and Pound Sterling had a significant negative impact on gross margins in Europe, and these negative impacts were partially offset by the benefits of foreign exchange hedging gains reported in operating expenses.

For FY24, realised foreign exchange losses of US$5.7 million (FY23: US$17.5 million realised foreign exchange gains) were generated and unrealised foreign exchange gains were US$4.1 million (FY23: US$7.0 million unrealised foreign exchange losses).

The prior year’s unrealised foreign exchange gains arose mainly on open positions of FECs used to hedge net open working capital position and open order backlog.

3	EBITDA increased by 150.0% due to higher trading coupled with a decrease in share-based payment charges.

4	Adjusted EBITDA increased due to higher results in Europe, MEA and Asia‑Pacific.

Net working capital

Net working capital days decreased to 21 days (FY23: 23 days) with an increase in inventory turns offset by a combination of higher days sales outstanding and lower days payable outstanding. Net debt increased by US$20.5 million to US$88.9 million (FY23: US$68.4 million).

Cash and net debt

US$ million	FY24	FY23
Cash resources	328.5	332.3
Bank overdrafts	(8.6)	(7.1)
Short-term interest-bearing liabilities and short-term leases	(391.8)	(361.9)
Long-term interest-bearing liabilities and long-term leases	(17.0)	(31.7)
Net debt	(88.9)	(68.4)

Non-financial performance

Westcon International has successfully continued to roll out and increase adoption of internal tools, new applications, and extended partner and vendor integrations that have all contributed to improved internal and external stakeholder experiences.

The business has, once again, received numerous vendor awards and accolades in recognition of the outstanding execution in all markets in which the business operates (refer to the Westcon International divisional review).

Westcon International’s ONE Westcon, related employee wellness initiatives and training programmes all contribute to enriching the lives of every Westcon International team member, motivating them to make outstanding contributions.

Westcon International is committed to ambitious corporate climate action and has signed up to the SBTi initiative and formally committed to set net‑zero targets for validation by the SBTi.