Datatec (DTC) investor relations material

Executive summary

• H1 FY27 gross invoiced income rose 18.0% to $4.84bn; adjusted EBITDA increased 16.6% to $150.7m and underlying EPS rose 56.5% to 30.2 US cents.

• Strong Westcon results and record Logicalis International performance offset weak Logicalis Latin America trading.

• AI infrastructure investment, cybersecurity and networking demand supported trading and the outlook.

• Westcon refinancing enabled a $438.0m special dividend to shareholders.

Financial highlights

• Revenue increased 13.9% to $2,024.1m; gross profit rose 5.8% to $511.2m.

• Gross profit growth was 9.3% excluding $15.5m of prior-year indirect tax credits.

• Adjusted EBITDA rose 16.6% to $150.7m; reported EBITDA fell 7.8% to $128.1m and operating profit declined 11.4% to $95.5m.

• Profit for the period increased 14.0% to $67.5m; headline EPS rose 1.4% to 22.3 US cents.

• Operating cash flow was $27.9m versus $62.3m; cash and cash equivalents ended the period at $1,033.0m.

Outlook and guidance

• Resilient demand is expected to continue, supported by structural growth in cybersecurity, cloud and AI infrastructure.

• AI adoption across enterprise and edge applications, rising infrastructure budgets and a larger installed base support future demand.

• Strong Westcon order intake, backlog growth and healthy pipelines supported expectations for a strong start to H2.

• Latin America priorities include restructuring, diversification, margin and efficiency initiatives, and gradual recovery.

• H2 will include the full-period impact of General Atlantic loan interest and Westcon’s minority investment; operating leverage and cash generation remain priorities.