Home » South African businessman Jens Montanana leads Datatec to $5.5 billion revenue

South African businessman Jens Montanana leads Datatec to $5.5 billion revenue

by Feyisayo Ajayi
Jens Montanana

Key Points:

  • Johannesburg-based tech group led by Jens Montanana reports 6.1% revenue rise to $5.46 billion for FY24.
  • Westcon International performed well, but Logicalis Latin America faced headwinds impacting overall performance.
  • Reflecting positive results, Datatec announced a final cash dividend with a scrip option for shareholders.

Johannesburg-based Datatec, a multinational technology group led by South African businessman Jens Montanana, delivered a single-digit revenue increase for the fiscal year ended February 29, 2024. Despite a challenging operating environment, its revenue reached $5.46 billion, reflecting a 6.1 percent year-over-year rise from $5.14 billion.

Datatec’s recently released financial statements highlight a notable improvement in gross margin, which climbed to 15.8 percent from 14.5 percent in the prior year. This increase propelled gross profit to $862.2 million, up from $744.5 million in 2023. The stabilization of foreign exchange rates, a key factor impacting the previous year due to the U.S. dollar’s appreciation against the euro and pound sterling (particularly affecting Westcon Europe), played a significant role in this margin improvement.

These financial gains were bolstered by effective foreign exchange hedging strategies, resulting in substantial operating cost savings. Consequently, earnings before interest, taxes, depreciation, and amortization (EBITDA) surged to $177.6 million, marking a 3.3 percent margin, up from $98.3 million and a 1.9 percent margin in the previous year.

Datatec delivers solid FY24 on Westcon strength

Commenting on the financial results, CEO Jens Montanana stated, “The Group maintained a strong operational performance in the second half of the year to deliver a solid full-year result as global demand continues for our technology solutions and services. Operationally, Westcon International continues on its growth trajectory, delivering an exceptional performance in FY24.”

Montanana also acknowledged the challenges faced by Logicalis Latin America, specifically in Argentina and Brazil, which hampered its financial performance. “Logicalis International performed well, however, Logicalis Latin America faced numerous challenges in Argentina and Brazil, which impacted its financial performance. We are optimistic about FY25 and remain focused on unlocking value for shareholders,” he added.

Datatec capitalizes on growth opportunities, announces dividend

Founded by Montanana in 1986, Datatec has evolved into a key player in providing ICT solutions and services, with a specialization in software and cloud computing solutions, including Infrastructure as a Service (IaaS) and Software as a Service (SaaS). Under Montanana’s leadership, the group has extended its footprint to over 50 countries across North America, Latin America, Europe, Africa, the Middle East, and Asia-Pacific.

Reflecting its strong performance, Datatec’s net assets increased by 6.2 percent , from $472 million to $501.2 million. This underscores the company’s ability to capitalize on growth opportunities in diverse markets and enhance its earnings quality.

In light of these achievements, the board of directors declared a final cash dividend with a scrip distribution alternative for the period ended February 29, 2024, of R 1.30 per share ($0.0708 per share), amounting to R298.4 million ($16.2 million).

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