Econocom's group profits fell by more than 25 per cent in 2018, missing its €120m recurring operating profit target.
Group revenues grew 2.7 per cent organically and eight per cent overall to €2.8bn, while recurring operating profit sank by 25.7 per cent to €114.6m.
Its Technology Management and Financing arm, Econocom's largest business unit, bore the brunt of the bottom-line decline, as recurring operating profits tanked by 42.3 per cent to €53.3m, while revenues dipped by 1.6 per cent to €1.36bn.
The Belgium firm's two other business segments - Services and Products & Solutions - meanwhile logged a solid performance. Services revenues grew by 15.5 per cent to €1bn, but profits were down six per cent to €40.3m.
Products and Solutions reported revenues of €448m, up 26.7 per cent year on year or 9.4 per cent organically. Operating profits grew by 13 per cent to €21m.
Econocom missed its recurring operating profits target of €120m for the year, stemming from a profit warning accompanying its H1 results, when profits came in at just €34m. The firm is targeting €128m in recurring operating profits for 2019.
Its Technology Management and Financing business is set to see big investment this year in expanding its sales force, launching new projects and making "selective" acquisitions.
Jean-Louis Bouchard, CEO of Econocom, said: "We now intend to prepare a new phase of development for the group. This will involve refocusing on certain activities, reducing overheads, intensive investment in the sales force and continuing to reduce our net debt to give us greater leeway. To carry out this plan successfully in growth markets, I will be relying on a new management team including some of Econocom's historic leaders, new talents, and the heads of our operational activities."
Some say performance, others say money but it may be systems and processes that carry the day
Q1 paints mixed picture for Sweden-based storage integrator
Carmen Sorice III has issued a rebuttal to Veeam's recent claims the legacy player is slow to innovate
How well do vendors and partners really know each other? Take part in our survey and win a free Amazon voucher
We're asking vendors and channel partners alike to complete our five-minute survey to win a free Amazon gift voucher