Avnet generated sales of $26.5 billion in fiscal 2023

International Electronic Business News on the 17th Avnet announced its fourth quarter and fiscal year results for fiscal year 2023 (as of July 1, 2023) yesterday (16).

Let’s start with the fourth quarter. Q4 sales in fiscal 2023 increased 2.9% year-over-year to $6.6 billion from $6.4 billion last year. Sales increased 2.9 percent in constant currency. Q4 operating margin was 4.3%, down 14 basis points year-over-year; Adjusted operating margin of 4.8% increased 26 basis points year-over-year – in other words, adjusted operating income increased three times year-over-year to sales.
The company is currently splitting the larger business segment into EC (Electronic Components) and Farnell (the parent company of eNex). Electronic components operating margin for the fourth quarter was 5.1%, up 77 basis points year-over-year. Farnell’s operating margin was 8.1%, down 90 basis points from the prior quarter.
As for the performance of the full fiscal year 2023, Avnet’s sales for the full fiscal year increased by 9.2% year-on-year to US$26.5 billion from US$24.3 billion in the previous year. In constant currency, sales increased by 13.4 percent. Full-year operating margin of 4.5%, up 61 basis points year-over-year; Adjusted operating margin of 4.6% increased 55 basis points year-over-year – Adjusted operating income increased more than 2.5 times sales year-over-year.

In addition, electronic components operating margin for the fiscal year was 4.8%, up 89 basis points year-over-year. Farnell’s operating margin was 8.1%, down 90 basis points from the prior quarter.
Commenting on the company’s financial results, Phil Gallagher, Chief Executive Officer of Avnet, said, “Avnet’s strong financial results for fiscal 2023 are a testament to the dedication and commitment of our employees to driving profitable growth. With our extensive supplier product line, diverse customer base, and the strength of the end markets they serve, we are well positioned to capitalize on the expected industry growth in the coming years. Although we have no control over recent market conditions, our team will continue to focus on good execution in the market. ”