EMEA drives Avnet sales advance in Q4

16th August 2023

Avnet Inc

Mick Elliott

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Avnet sales rose 9.2 % year from $24.3 billion to $26.5 billion in fiscal year 2023.

In Q4 sales rose 2.9 % to $6.6 billion from $6.4 billion.

The Electronic Components business racked up a 12^th consecutive quarter of growth with sales of $6.11 billion, a year on year increase of 3 %.

Star performer in Q4 was the EMEA region where sales soared 18.7 % year on year to a record $2.45 billion from $ 2.06 billion – “a phenomenal quarter,” commented Phil Gallagher, Avnet Chief Executive Officer. He cited strong performances in the transportation and industrial markets backed by good returns in aerospace and defence.

The Americas was also on good form banking a 7.1 % increase in sales to $1.73 billion.

Market slowdowns in Asia/Pacific blighted sales to the tune of an 11.9 % decline to $2.37 billion.

Farnell Q4 sales edged ahead 0.7 % to 445.4 million. Full year sales came in at $1.73 billion – “a solid year,” said Phil Gallagher.

Added Gallagher, “We have seen terrific execution by our teams, working hard to get inventory in from our suppliers and out to our customers as fast as possible. As the quarter went on, we stayed strong. We made market share gains through the strength of our supplier relationships.”

He was also excited by high levels of design activity in the quarter. “Customers are engaging our FAEs on new designs, not the redesigns we have seen in previous years.”

Avnet sees average lead times continue to decline, though they remain extended for high-end microcontrollers, power and most automotive-related parts. Avnet’s book-to-bill ratio remained below parity at the end of Q4.

Gallagher added, “Our strong financial results in fiscal 2023 demonstrate the dedication and commitment of our employees in driving profitable growth. With the breadth of our supplier line card, our diversified customer base and the strength of the end markets they serve, we are well positioned to capitalise on the industry growth expected over the next several years. Although we can’t control near-term market conditions, our team will continue to focus on executing well in the market.”