Avnet posted sales of $6.37 billion in Q4, a 21.9 % increase year on year from $5.2 billion, but a dip of -1.8 % sequentially.
Operating income leapt a whopping 89.5 % to $287.6 million year on year
Avnet Chief Executive Officer Phil Gallagher (pictured) commented, “We are pleased to end the fiscal year on a high note, delivering another strong quarter of year-over-year sales growth and operating margin expansion. Supported by solid execution across our businesses, Avnet continues to gain share and secure new opportunities in the markets in which we compete. Despite an evolving macro environment, we remain well-positioned to continue to grow our business profitably by helping our customers and suppliers navigate an increasingly complex market.”
Farnell Q4 sales edged up 0.2 % from $441.4 million to $442.3 million. Farnell’s full year sales of $1.8 billion are a company record.
America sales were the highlight in Q4, rising 35% to $1.61 billion. EMEA sales rose 18.8 % to $2.06 billion, and Asia/Pacific sales increased 17.2 % to $2.69 billion.
Electronic Components operating income margin of 4.3%, increased 122 basis points year over year. Farnell operating income margin of 14.2% increased 597 basis points year over year.
Demand creation revenue as a percentage of Electronic Component sales advanced to 31.2 % in the fiscal year.
Gallagher described demand in the industrial, transportation, and aerospace and defence segments as “robust” in Q4. He expects EV charging and other alternative energy applications to pick up.
Gallagher added that lingering COVID-19 impacts, inflation and the conflict in Ukraine continue to have ripple effects on the supply chain.