Ingram Micro Reports Fiscal Fourth Quarter and Full Fiscal Year 2024 Financial Results

   -- Fourth quarter net sales of $13.3 billion, up 2.5% from the prior-year 
      period in US Dollars, and up 3.3% from the prior-year period on an FX 
      neutral basis 
 
   -- Fourth quarter net income of $83.1 million and non-GAAP net income(1) of 
      $213.1 million 
 
   -- Fourth quarter diluted earnings per share ("EPS") of $0.36 and non-GAAP 
      diluted EPS(1) of $0.92 
 
   -- Fourth quarter cash provided by operations of $310.0 million and adjusted 
      free cash flow(1) of $337.2 million 
 
   -- Full year cash provided by operations of $333.8 million and adjusted free 
      cash flow(1) of $443.3 million 
 
   -- $483.1 million dollars of debt repaid in 2024 and $1.56 billion of debt 
      repaid since the beginning of 2022 
 
   -- Declared a cash dividend of $0.074 per share of common stock, payable on 
      March 25, 2025, to stockholders of record as of March 11, 2025 
 
   -- Authorized share repurchase plan of up to $75 million in connection with 
      any secondary public offerings prior to February 26, 2026 
IRVINE, Calif.--(BUSINESS WIRE)--March 04, 2025-- 

Ingram Micro Holding Corporation $(INGM)$ ("Ingram Micro" or the "Company") today reported fiscal fourth quarter and fiscal year-end results for the period ended December 28, 2024. The Company reported fourth quarter net sales of $13.3 billion, net income on a GAAP basis of $83.1 million or $0.36 per share, and non-GAAP net income of $213.1 million or $0.92 per share.(1) Included in these results is the discrete impact of charges in India totaling $0.07 per share as further described below.

"We are pleased with our Q4 performance where we saw a return to year-over-year revenue growth, driven by strong performance in Cloud and in Client and Endpoint Solutions," said Paul Bay, Ingram Micro's Chief Executive Officer. "We are well positioned to continue this momentum into 2025. Entering 2025, our strategy of innovating and differentiating on the platform continues to gain momentum, as our core lines of business return to growth. The technology investments we have made position us well to help our customers and vendor partners gain operational efficiencies."

"Our full year results highlight our focus on working capital management and profitable growth. We generated strong adjusted free cash flow of $443.3 million during the year and repaid $483 million of our term loan balance," said Mike Zilis, Ingram Micro's Chief Financial Officer. "We will be paying a quarterly dividend beginning in the first quarter of 2025. Our commitment to disciplined spend and quality of revenue will remain key to our strategy in 2025."

Consolidated Fiscal Fourth Quarter 2024 Results(1)

 
 
                   Thirteen Weeks Ended   Thirteen Weeks Ended 
                     December 28, 2024      December 30, 2023 
                   ---------------------  --------------------- 
($ in thousands, 
except per share                % of Net               % of Net   2024 vs. 
data)                Amount       Sales     Amount       Sales      2023 
                   -----------  --------  -----------  --------  ----------- 
Net sales          $13,344,670            $13,019,501            $325,169 
Gross profit           936,085  7.01%         978,660  7.52%      (42,575) 
Income from 
 operations            248,500  1.86%         330,935  2.54%      (82,435) 
Net income              83,116  0.62%         136,524  1.05%      (53,408) 
Adjusted Income 
 from Operations       305,237  2.29%         372,831  2.86%      (67,594) 
Adjusted EBITDA        418,061  3.13%         435,390  3.34%      (17,329) 
Non-GAAP Net 
 Income                213,097  1.60%         220,902  1.70%       (7,805) 
EPS: 
   Basic           $      0.36            $      0.61 
   Diluted         $      0.36            $      0.61 
Non-GAAP EPS: 
   Basic           $      0.92            $      0.99 
   Diluted         $      0.92            $      0.99 
 
 

Consolidated Fiscal Fourth Quarter 2024 Financial Highlights

   -- Net sales totaled $13.3 billion, compared to $13.0 billion in the prior 
      fiscal fourth quarter, representing an increase of 2.5%. The 
      year-over-year increase was primarily a result of higher net sales in our 
      North America, Asia-Pacific and Latin America regions, partially offset 
      by a net sales decline in our EMEA region. The translation impact of 
      foreign currencies relative to the US Dollar had an approximate 0.8% 
      negative impact on the year-over-year net sales comparison. 
   -- Gross profit was $936.1 million, compared to $978.7 million in the prior 
      fiscal fourth quarter. 
   -- Gross margin was 7.01%, compared to 7.52% in the prior fiscal fourth 
      quarter. The year-over-year decrease in gross margin was driven by a 
      shift in sales mix towards our lower-margin client and endpoint solutions 
      net sales, as well as mix towards the lower-margin, lower cost-to-serve 
      Asia-Pacific region and a higher mix of large enterprise project sales, 
      which typically yield lower margins. 
   -- Income from operations was $248.5 million, compared to $330.9 million in 
      the prior fiscal fourth quarter. Adjusted income from operations was 
      $305.2 million, compared to $372.8 million in the prior fiscal fourth 
      quarter. Included in the results for the fiscal fourth quarter of 2024 is 
      $34.1 million of selling, general and administrative ("SG&A") expenses, 
      or 26 basis points of net sales, representing the value of restricted 
      stock units that immediately vested in connection with our initial public 
      offering ("IPO") in October 2024. Also included in these results are the 
      impacts of discrete charges in India, which yielded inventory write-offs 
      impacting gross profit by $9.1 million, or 7 basis points of net sales, 
      and goods and services tax charges and higher professional services costs 
      impacting operating expenses by $11.2 million, or 8 basis points of net 
      sales in the 2024 quarter. 
   -- Income from operations margin was 1.86%, compared to 2.54% in the prior 
      fiscal fourth quarter. Adjusted income from operations margin was 2.29% 
      compared to 2.86% in the prior fiscal fourth quarter. This year-over-year 
      decrease was primarily due to the mix shift in net sales and resulting 
      impact on gross margins, as well as the impact of restricted stock units 
      vesting and the India charges noted above which negatively impacted the 
      current year margin by 41 basis points. 
   -- Adjusted EBITDA was $418.1 million, compared to $435.4 million in the 
      prior fiscal fourth quarter. 
   -- Diluted EPS was $0.36, compared to $0.61 in the prior fiscal fourth 
      quarter. Non-GAAP diluted EPS was $0.92, compared to $0.99 in the prior 
      fiscal fourth quarter. The EPS impact of the India items noted above was 
      $0.07. 
   -- Cash provided in operations was $310.0 million, compared to $0.9 million 
      used in operations in the prior fiscal fourth quarter, and adjusted free 
      cash flow was $337.2 million, compared to $13.4 million in the prior 
      fiscal fourth quarter. 

Regional Fiscal Fourth Quarter 2024 Financial Highlights

North America

Net sales were $4.7 billion, compared to $4.5 billion in the prior fiscal fourth quarter. The year-over-year increase in North American net sales was driven by strength across all lines of business, particularly PCs, server and storage. Net sales in the current year were particularly strong with our large enterprise customers.

Income from operations was $115.2 million, compared to $125.3 million in the prior fiscal fourth quarter. The year-over-year decrease was impacted by an increase of $8.6 million in restructuring charges taken in the current year fiscal fourth quarter.

Income from operations margin was 2.47%, compared to 2.76% in the prior fiscal fourth quarter, primarily due to a shift in sales mix towards our lower-margin client and endpoint solutions and enterprise customers as well as restructuring costs impacting the current year fiscal fourth quarter by 17 basis points. These impacts were partially offset by continued optimization of our operating expenses, including restructuring actions taken in 2023 and early 2024.

EMEA

Net sales were $4.1 billion, a decrease of 1.5% compared to the prior fiscal fourth quarter. The year-over-year decrease in EMEA net sales was primarily a result of a decrease in advanced solutions, partially offset by modest growth in client and endpoint solutions.

Income from operations was $90.9 million, compared to $106.9 million in the prior fiscal fourth quarter. The year-over-year decrease was impacted by an increase of $4.3 million in restructuring charges taken in the current year fiscal fourth quarter.

Income from operations margin was 2.23%, compared to 2.59% in the prior fiscal fourth quarter. The year-over-year decrease in income from operations margin was primarily due to a shift in sales mix towards our lower-margin client and endpoint solutions, as well as restructuring costs impacting the current year fiscal fourth quarter by 11 basis points.

Asia-Pacific

Net sales were $3.6 billion, compared to $3.3 billion in the prior fiscal fourth quarter. The increase in Asia-Pacific net sales was driven by net sales of client and endpoint solutions, led by growth in tablets and consumer electronics product sales, partially offset by softer advanced solutions.

Income from operations was $53.5 million, compared to $76.4 million in the prior fiscal fourth quarter.

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