Farnell drives record revenues as Avnet reports Q2 results
Avnet second quarter fiscal 2022 financial results show record revenues of USD 5.4 billion, up 24.9% YoY and 5.8% QoQ. These results were supported by the performance from the Farnell business with sales increasing 35.3% YoY to USD 441 million.
Farnell’s operating margin grew to 13.7% in Q2, up from 10.9% in Q1 and 8.3% in the final quarter of FY21.
Farnell’s growth has been driven in large part by continued investments in expanding the global product portfolio. The business says in a press release that it plans to add 250,000 new SKUs through FY22 and has so far delivered 55% of that total – with the existing global portfolio now approaching one million products. Additional investments in e-Commerce capabilities, new product introductions and continued support for the online engineering community are also said to have been key drivers of growth.
Over 71% of transactional orders were placed online through the quarter, rising above 85% in some European countries.
“We are really pleased with performance in FY22 to date and Q2 results were especially strong. The business is well positioned to weather macro-challenges and continue delivering the very best in High Service Distribution through the new calendar year,” says Rob Rospedzihowski, President Sales, EMEA, in the press release.
In EMEA, the company says that the sales performance was driven across all key market segments with the strongest performance in the DACH region. Vertical markets such as Electrical, Connectivity, and the Contract Manufacturing sector showed the greatest growth and this is expected to continue in the coming quarters.
Moving deeper into 2022, the company says that it will soon take its new UK distribution centre into full operation.