CDW Holding (BXE) H1 2023 earnings summary

Executive summary

• H1 2023 revenue fell 9.3% YoY to US$56.7m; net loss was US$0.6m versus profit of US$1.0m in H1 2022.

• Gross margin improved to 17.8% from 16.8%, while lower one-off gains and weaker segment contributions weighed on results.

Financial highlights

• Gross profit was US$10.1m, down 3.8% YoY; operating result was a US$3k loss versus US$1.7m profit.

• Other income fell to US$0.4m from US$2.6m; H1 2022 included US$1.1m convertible-bond valuation gain and US$0.7m residential-property disposal gain.

• Loss before tax was US$0.3m versus US$1.6m profit; net loss attributable to owners was US$0.4m versus US$1.1m profit.

• Distribution costs declined 32.1% to US$1.2m and administrative expenses fell 3.3% to US$9.3m; finance costs rose 49.5% to US$0.3m.

Outlook and guidance

• Outlook for FY 2023 is cautious, barring unforeseen circumstances; focus remains on cost control, efficiency, higher-margin products and customer engagement.

• Large automotive display backlight demand is expected to support growth; US retail recovery and stabilization of high interest rates could benefit OEM orders next year.

• Vietnam production feasibility work is underway, with a Ho Chi Minh City representative office established; negotiations also began to restart Philippine production.