Sweden-based VAR Dustin has broken the €1bn revenue mark in its full-year results as sales rocketed by more than 20 per cent.
The reseller's revenues grew by 21.7 per cent for its year ending 31 August 2019 to SEK 12.54bn (€1.15bn), while adjusted EBITA grew 11.8 per cent to SEK 560m.
Dustin attributes the high revenue growth to winning a large public sector framework agreement in Denmark in its Q4, which gave its large corporate and public sector (LCP) business a 16.5 per cent revenue boost year on year.
But a boost in the reseller's low-profit public sector business has put pressure on its profit margins for the full year. Dustin's adjusted EBITA margin shrank from 4.9 per cent to 4.5 per cent over the 12-month period.
Dustin also claims that investments in improving its sales and delivery operations for its solutions and services business have driven up its cost base and put pressure on margins.
The firm claims that it intends to better balance its revenue mix between large corporate and public sector business to prevent margin fluctuations. It's aiming for around one third of its LCP business' revenues to go through large corporate accounts.
Hardware sales accounted for 84 per cent of Dustin's business in the fiscal year, with software and services accounting for the remaining 16 per cent.
Dustin's relatively new Dutch business, which is based on its acquisition of Vincere Groep in 2018, now accounts for seven per cent of its total revenues.
But the reseller plans to continue investing in the Dutch market for the remainder of the year. It plans to open a new 2,500 square-metre warehouse in Veenendaal and has slated the launch of an online buying platform in the Dutch market for the end of the year.
2019 has also been a heavy year of M&A for Dustin. The reseller closed its acquisition of Finland-based IT provider Chilit in March, adding €33.7m to its Nordic operations.
Dustin is gunning for SEK 15bn revenues by 2022.
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