Westcon Group NZ lifts profit despite revenue drop
Mon, 3rd Aug 2026 (Today)%201.webp)
Westcon Group NZ reported higher profitability for the year ended 28 February 2026 despite a decline in revenue, as lower purchasing costs, improved gross margins and stronger finance income helped offset softer sales. The distributor also strengthened its cash position while increasing shareholder distributions.
Revenue fell to NZD $85.3 million in 2026 from NZD $88.5 million a year earlier.
The decline in sales was accompanied by a sharper reduction in purchases, which fell to NZD $52.3 million from NZD $65.5 million. The company also recorded a NZD $999,489 reduction in the value of finished goods, compared with a NZD $2.0 million increase in inventory values in the previous year.
Employee benefit expenses increased to NZD $13.8 million, up from NZD $12.8 million. Depreciation and right-of-use asset depreciation totalled NZD $821,380, compared with NZD $778,607 in 2025.
Other operating expenses rose to NZD $4.3 million, while the company reported other gains of NZD $963,077 after recording an other loss in the previous year.
Earnings growth
Profit before income tax increased to NZD $13.6 million, compared with NZD $9.7 million in the previous year.
Income tax expense rose to NZD $3.8 million, reflecting the stronger earnings performance. Profit after tax reached NZD $9.8 million, an increase from NZD $7.0 million in 2025. Total comprehensive income matched the annual profit, as no other comprehensive income was recognised during the year.
Finance income also contributed to the stronger result. Interest income increased to NZD $869,316, compared with NZD $295,566 a year earlier. Finance costs declined to NZD $99,255 from NZD $133,791.
The company also recognised a gain on derivative contracts of NZD $1.18 million, compared with NZD $2.21 million in gains recorded during the previous financial year.
Balance sheet
Total assets stood at NZD $74.6 million at the end of February 2026, down from NZD $81.6 million a year earlier.
Cash and cash equivalents decreased to NZD $41.1 million from NZD $53.7 million. Trade and other receivables increased to NZD $27.7 million, up from NZD $23.6 million, while inventories rose to NZD $2.6 million from NZD $1.6 million.
Property, plant and equipment increased to NZD $388,362 from NZD $267,050, while right-of-use assets declined to NZD $969,363 from NZD $1.5 million.
Deferred tax assets rose to NZD $193,523, compared with NZD $164,760 in the previous year.
Liability changes
Current liabilities totalled NZD $48.3 million, broadly unchanged from NZD $48.1 million in 2025.
Trade and other payables decreased to NZD $40.6 million from NZD $42.7 million.
Current income tax payable increased sharply to NZD $2.1 million, compared with NZD $622,582 a year earlier, reflecting the higher taxable profit. Employee benefit obligations increased to NZD $3.1 million from NZD $2.1 million, while other current liabilities fell to NZD $1.5 million from NZD $2.0 million.
Total liabilities declined to NZD $48.8 million, down from NZD $50.6 million in the previous financial year.
Equity position
Net assets decreased to NZD $25.8 million from NZD $31.0 million despite the increase in annual profit.
Retained earnings rose to NZD $40.8 million from NZD $34.0 million.
The company declared dividends of NZD $15.0 million during the year, compared with NZD $3.0 million in 2025. The larger distribution reduced total equity to NZD $25.8 million, from NZD $31.0 million a year earlier, while share capital remained unchanged at NZD $1,000.
The financial statements show Westcon Group NZ generated stronger earnings during the year despite lower revenue, with improved purchasing costs, higher finance income and disciplined expense management supporting profit growth while returning a larger amount of capital to shareholders.