Ingram's Australian sales rocket half-a-billion in two years

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Ingram's Australian sales rocket half-a-billion in two years
Matt Sanderson, Ingram Micro

Ingram Micro Australia grew revenue by more than half-a-billion dollars in just two years – and is on track to crack $2 billion in 2015.

The distie hit $1.75 billion in its 2014 fiscal year to 3 January 2015, according to figures only recently reported to corporate regulator ASIC. The company employed more than 500 people, a rise from the year before.

The 2014 revenue had jumped $350 million, or 25 percent, from the previous year. It was a rise of $527 million in the two years since 2012, the distributor's lowest ebb after its troubled ERP rollout.

Ingram Micro is currently at the tail end of its 2015 financial year, with the annual report not due to be reported to ASIC for another 12 months, but Matt Sanderson, Ingram Micro's local managing director, said the distie's core technology business has continued to grow at double-digit rates.

That would suggest Ingram will easily turn over $2 billion for the 2015 year, putting it neck and neck with rival distributor Synnex, which will also break the $2 billion barrier in Australia this year.

Ingram's Australian subsidiary last saw revenues that high in its 2010 financial year, when it turned over $2.1 billion.

The only other Australian distie nudging 10 figures is Dicker Data, which grew significantly through its acquisition of Express Data; the distie has yet to post a full-year report after shifting its fiscal year end from 30 June to 31 December. Unlike Ingram Micro and Synnex, Dicker's revenue includes New Zealand, which represents around 10 percent of turnover.

Despite the surge in revenue, Ingram Micro Australia still posted a $14.3 million loss for the 2014 year. The last time the distributor turned a profit in Australia was the 2010 financial year.

However, Sanderson said the Ingram's core distribution operations were now back in the black, echoing a statement from global CEO Alain Monie earlier this year that the "core Australia business" had returned to profit.

"In 2014, our Australian business finished ahead of target for our core Technology Solutions business both in top and bottom line. Delivering a profitable core business was built on the back of strong revenue growth of [more than] 20 percent primarily driven by commercial and SMB business, key focus areas for us," said Sanderson.

It is understood that "core business" does not include newer areas such as Ingram's cloud marketplace and its expanding logistics services business, both of which have seen significant investments in Australia. Ingram Micro is set to announce new vendors in its cloud marketplace, after launching in June with foundation partners Microsoft and SkyKick.

Ingram's Commerce and Fulfilment Solutions business is based around Shipwire, which the distributor acquired in October 2013.

Sanderson said the fulfilment division "offers our partners the complete range of logistics and e-commerce capabilities, enabling them to reduce their cost base, generate new revenue by accessing new markets/customers, and become more efficient and effective in getting their products to market. We saw an increasing take-up of this service as the year progressed".

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