Kee Ong (Synnex A/NZ)
Synnex Australia has seen its net profit climb from $42.2 million up to $44.9 million, while revenue remained steady going from $2.7 billion up to $2.8 billion in its financial year ending 31 December 2021.
In financial statements lodged with ASIC, gross profit rose from $144.6 million up to $152.7 million. While profit before income tax rose from $61 million to $64.9 million.
Synnex Australia CEO Kee Ong said IT demand remained strong due to the pandemic that triggered work from home and remote learning requirements coupled with a strong uptake in cloud adoption.
Its commercial and cloud business saw double digit year-on-year growth, experiencing 98 per cent compound annual growth rate (CAGR) since 2017.
In a pandemic year of supply chain disruptions, Synnex appeared to increase its inventories from $274 million in 2020 to $375.6 million in 2021.
Ong said Synnex ramped up its inventory holding, provide buffer due to supply chain disruptions resulting in long lead-time from overseas, as well as uncertainty in local project rollouts/deployments.
"Investment in our logistics/automation capabilities in the past has delivered significant outcome that support peak season/large volume operation volume," he said. "We have provided credit support to reseller partners under hardship due to COVID impact on certain vertical industries, as well as additional credit facilities to support business momentum."
For the year ahead, Ong said it was focusing on its solution offering, as well as supporting the transformation to “management service provider” (MSP) business model, offering full data integration with vendor and reseller partners to achieve high operation efficiency.
Recently it was revealed the New Zealand operation enjoyed a sharp increase in sales during its 2021 financial year with revenue increasing from NZ$198.8 million to NZ$230.6 million in the same period of 2021.
After reporting a dip in revenue between 2018 and 2019, Synnex NZ's sales over the last two years reached consecutive all-time highs.
Profit before tax for the 2021 year was NZ$3.5 million, up from NZ$1.9 million in 2020.
In August last year, Synnex Australia added Google Workspace’s API integration onto its cloud marketplace platform, a few months after first signing a distribution agreement with the vendor.
The integration allowed Synnex’s Google Cloud partners to authorise themselves as a Google Cloud Indirect Reseller Partner while also managing their offerings through the Synnex B2B portal.
The deal provided automation of a streamlined billing and invoicing process for Google Cloud managed service providers (MSPs) with the distributor claiming this will give them “flexibility to scale, service more customers and attain a faster time to market while having a clear visibility on pricing and plans”.
