Synnex Australia set to crack $2 billion revenue

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Synnex Australia set to crack $2 billion revenue
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Synnex Australia is targeting $2 billion in revenue in 2015, an achievement that would dwarf almost every other distributor in Australia

While the distributor’s 2015 financial year doesn't close until 31 December, chief executive Kee Ong confirmed to CRN that the company is aiming to hit the $2 billion mark.

Over the past two years, Synnex Australia has seen consecutive $100-plus million revenue increases. Last year was particularly strong – according to its 2014 financial results, only just released to corporate regulator ASIC, Synnex grew revenues by $249 million to reach $1.8 billion. Profits also grew last year, more than quadrupling from $3.8 million to $14.5 million after tax.

If Synnex grows revenue that quickly again, it'll easily smash through the $2 billion mark by the end of this calendar year.

The last time Australia was home to a $2 billion distributor was 2010, when Ingram Micro posted almost exactly $2 billion for the full year. Synnex generated $1.2 billion revenue in 2010.

That was the year before Ingram's disastrous SAP deployment. Ingram's Australian revenue had fallen by $800 million to $1.2 billion by 2012.

The distributor had clambered back to $1.4 billion by December 2013, the most recent annual report lodged with ASIC. Ingram's turnaround under Australian managing director Matt Sanderson has come in for kudos from head office, with Ingram's global CEO, Alain Monié, praising the Australian operation for returning to profit.

The billion-dollar club

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.

By comparison, Avnet and Westcon both generated over $400 million in Australia, and Distribution Central has cracked $300 million, with input from its New Zealand and Singapore operations.

These six major Australian distributors generate at least $5 billion of channel business; depending on how Synnex, Ingram Micro and Dicker Data close out their year, the figure could be closer to $6 billion.

Next: Synnex's Sydney expansion 

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