Table of Contents
Key Points
- Datatec's net profit soared 91.75% to $30.2 million in H1 2025, despite a 5.45% revenue decline.
- Strategic cost management led to a 27% increase in EBITDA, rising from $80.6 million to $102.5 million.
- Westcon International's gross profit grew 6.1% to $216.1 million, while Logicalis Latin America faced a 14.8% drop amid market challenges.
Datatec, a leading technology and ICT solutions group based in Johannesburg and led by South African businessman Jens Montanana, reported a remarkable 91.75-percent increase in net profit, reaching $30.2 million in the first half of its 2025 fiscal year.
This growth comes despite a 5.45-percent dip in revenue, which fell to $2.61 billion due to ongoing market challenges and currency fluctuations.
Cost management drives profit margins
The company’s financial results for the six months ending Aug 31, 2024, reveal that gross profit rose to $432.7 million from $417.9 million in the same period last year.
This increase was attributed to stringent cost controls and effective foreign exchange hedging. Operating costs were reduced by 1.87 percent to $322.3 million, which led to a 27-percent increase in EBITDA, climbing from $80.6 million to $102.5 million.
CEO Jens Montanana expressed optimism about the company’s performance, stating, “Despite some softening in certain European markets, we significantly strengthened our operating cash generation and earnings at all levels.”
“We anticipate stronger year-over-year performance across all divisions and remain dedicated to delivering strong shareholder returns as we advance our strategy to boost competitiveness and profitability,” Montanana added.
Resilience in diverse markets
Westcon International demonstrated resilience, achieving a 6.1-percent increase in gross profit to $216.1 million, despite a 2.9-percent decline in revenue to $1.8 billion driven by a changing product mix and decreased demand for Cisco products.
Conversely, Logicalis Latin America faced challenges, particularly in Argentina and Brazil, resulting in a 14.8-percent drop in gross profit to $48.3 million amid significant currency translation impacts and lower revenue of $215.4 million.
Datatec reports growth amid market challenges
Founded in 1986, Datatec is a leading provider of ICT solutions, focusing on software and cloud services, including Infrastructure as a Service (IaaS) and Software as a Service (SaaS).
Under the leadership of Montanana, Datatec has expanded to more than 50 countries, including North America, Latin America, Europe, Africa, the Middle East, and Asia-Pacific.
Total assets rose 2.43 percent to $3.82 billion, up from $3.73 billion, demonstrating the company's ability to seize growth opportunities in diverse markets.
In H1 2025, Datatec reported strong profit growth, driven by strategic cost management and resilience amid challenging revenue conditions, as it seeks to sustain momentum amid changing market dynamics.
