Credit: Ingram Micro
Ingram Micro increased revenues in New Zealand last year despite its controversial loss of the Cisco distributorship in late 2017.
Reported sales fell by $18.6 million but only because of a change in accounting standards between the two years.
On that basis, reported sales fell from $661.3 million in 2017 to $642.7 million for the year ended 31 December 2018 after an accounting standard impact of $39 million changed the treatment of revenue from networking and security products.
Like for like sales in 2018, however, were $681.7 million, up $20.4 million, notes in Ingram Micro NZ's accounts filed yesterday explain.
Gross profit went up from $65.3 million to $72.9 million while net profit was reported as $8.3 million, up from a loss in 2017 of $17.1 million, partly due to an impairment of $15 million recognised in that year.
Ingram Micro lost the major distributorship of Cisco in late 2017 after Cisco consolidated from three distributors (Ingram Micro, Dicker Data and Comstor) to just one: Comstor.
Spark-owned distributor Telegistics then picked up distribution for Cisco as a result of a trademark dispute between Cisco and Spark over the use of the term "Spark" in some of Cisco's communications products.
Telegistics also won sole distribution for those Cisco collaboration products. Earlier this year that decision was changed and Comstor now also distributes Cisco's collaboration products, which have now dropped the "Spark" brand globally.
Ingram Micro accounts show it also altered its capital structure, with its parent entity converting bonds on which interest was payable into equity.
Finance costs were down during the year by $7.4 million.
