Avnet second quarter fiscal 2022 financial results declare record revenues of $5.4B, up 24.9% YoY and 5.8% QoQ.
Avnet, Inc. (Nasdaq: AVT) announced results for its second quarter ending 1 January, 2022 with record revenues. These results were supported by strong performance from the element14 business with sales increasing 35.3% YoY to $441 million. element14’s operating margin grew to 13.7% in Q2, reflecting the strength of performance globally, up from 10.9% in Q1 and 8.3% in the final quarter of FY21.
element14’s growth has been driven in large part by continued investments in expanding the global product portfolio. The business planned to add 250,000 new SKUs through FY22 and has so far delivered 55% of that total, with the existing global portfolio now approaching one million products. Additional investments in e-Commerce capabilities, new product introductions and continued support for the online engineering community were also key drivers of growth.
In e-Commerce, element14 continues to strengthen its offering, with over 71% of transactional orders placed online through the quarter. Having already seen a 15% uplift in orders and a 30% increase in traffic, additional investments in the digital offering over the coming quarters will continue to drive increased traffic and customer acquisitions.
Weidi Zhu, Business President, element14, said: “We are really pleased with performance in FY22 to date and Q2 results were especially strong. The business is well positioned to weather macro-challenges and continue delivering the very best in High Service Distribution through the new calendar year.
“We have significantly invested in e-Commerce projects currently underway including the brand-new content management system and the investment in major headless commerce developments. These, in turn, will create a world-class experience for users, personalising and curating both content and product based upon the user’s own unique experience of the element14 sites. The global digital platforms will become more flexible and efficient with better integration, all of which is being designed with customers in mind.”
element14’s breadth of inventory remains a key priority for the Avnet group and was a critical driver of Avnet adjusted operating margin hitting 3.7% in the quarter, as well as Avnet’s gross margin rising from 11.8% to 12.2%.
New additions to element14’s linecard include Omega, Torex Semiconductor, Excelsys, Delta Electronics and CTS Corporation, as well as expansions to existing lines from Omron, Amphenol, TE Connectivity and CUI Inc. Brand new products from leading brands such as Raspberry Pi, Broadcom, Nexperia and others have also been introduced.
In APAC, strong sales performance was driven predominantly by market segments such as industrial automation, medical and EMS. There are excellent growth opportunities in electric vehicles, renewables and automobile markets in coming quarters.
Weidi Zhu, Business President, element14, said: “Our performance is a testament to our incredible employees across the globe. They have shown great resilience and commitment to the business, to our customers and to our suppliers over the last year and we are focused on delivering further successful operating results for our customers in the quarters to come.”
“We’re also looking ahead with great excitement as we recruit a VP of Customer Relations, take our new state-of-the-art UK distribution centre into full operation and roll-out agile working practices across the global business to ensure adaptability for any challenges to come.”
Read Avnet’s Second Quarter Fiscal 2022 Financial Results in full, and find out how element14 is supporting customer journeys here.
