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Key Points
- Datatec’s FY2025 revenue fell 8.84% to $3.64 billion, reflecting softer demand, currency headwinds, and regional challenges in Latin America, particularly Argentina and Brazil.
- Despite declining revenue, net profit climbed 36% to $69.3 million, driven by higher gross margins, reduced restructuring expenses, and fair value gains.
- The board declared a final dividend of $0.073 per share with a scrip alternative, distributing $16.2 million to shareholders.
Datatec, a leading technology and ICT solutions group based in Johannesburg and led by South African businessman Jens Montanana, delivered a resilient performance for the fiscal year ended Feb. 28, 2025, despite challenging market conditions and currency headwinds.
Revenue slipped by nearly 9 percent to $3.64 billion, falling below the $4 billion mark recorded the previous year. However, profitability climbed sharply, with net profit rising by double digits as the group focused on cost discipline and improved margins.
Revenue slides as profit climbs 36%
According to its financial statements, revenue fell by 8.84 percent to $3.64 billion, compared to $3.99 billion in the prior year, due to lower demand for certain technology products and adverse currency movements as challenging conditions persisted. However, the multinational technology group’s net profit rose by 36 percent to $69.3 million, up from $50.9 million in the prior fiscal year, buoyed by higher gross margins and fair value gains on investments.
Despite softer revenue, Datatec’s operating profit jumped 37 percent to $159.2 million, driven by tighter cost controls and lower restructuring expenses. Gross profit rose to $910 million, while profitability was further lifted by a $1.3 million fair value gain on investments and a 28 percent increase in interest income to $17.6 million.
Datatec CEO Jens Montanana highlights resilience
Commenting on the results, CEO Jens Montanana said, “The Group demonstrated resilience amid softer market demand and continued macroeconomic pressures. Our teams delivered solid profitability and cash generation while advancing strategic priorities.”
Montanana acknowledged operational headwinds, particularly in Latin America, that tempered performance. “Logicalis Latin America continued to experience challenges in Argentina and Brazil, which impacted regional results. However, our diversification across geographies and services remains a strength,” he noted.
Datatec builds value and sustains dividends
Founded by Jens Montanana in 1986, Datatec has grown into a global ICT powerhouse with operations in more than 50 countries. Its emphasis on software, cloud solutions, and recurring revenue streams has supported consistent growth and resilience over decades.
During the year, Datatec’s total assets climbed 9.36 percent, rising from $3.63 billion to $3.97 billion. Total equity increased 4.47 percent to $594.6 million, reflecting the company’s success in capturing growth opportunities across diverse markets while steadily improving earnings quality.
In line with its policy, the board declared a final cash dividend with a scrip distribution alternative for the period ended Feb. 28, 2025, of R1.3 ($0.073) per share, amounting to $16.2 million. Of this, $8.9 million was distributed in cash to shareholders who opted for the default payout, while $7.3 million was settled through the issue of 3,696,764 new ordinary shares.
