Avnet announced its third quarter, ended July 2, 2022, reporting strong sales and operating margin growth. The group also reported record sales in the fiscal year of Farnell: $1.8 billion.
The company's strong performance, with sales up 20.2 percent from the previous year, was the result of a significant increase in demand from the electronics, energy, security, and transportation sectors.
In the fourth quarter, sales were $442 million and the operating profit margin was 14.2 percent, an increase of 597 basis points over the previous year.
Farnell's continued investment in inventory has had a positive impact, with more than 18,000 new products added in the fourth quarter alone. Farnell's large inventory remains a key factor in its success and is a key priority for the Avnet Group. Farnell was key to Avnet's solid operating margin of 4.5 percent in the quarter.
Rob Rospedzihowski, president, Sales, EMEA, Farnell said, "We are pleased with this strong performance, especially given that it was achieved against a backdrop of market uncertainty, supply chain challenges and increased lead times associated with high customer demand. We plan to build on this momentum by continuing to invest in our inventory, digital marketing, and e-commerce platform."
Of note, nearly 56 percent of Farnell's total sales and 72 percent of total orders transacted were through the company's e-commerce platform this quarter.
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