Revenue fell at one of Dell’s main subsidiaries last year with the company hit by ongoing uncertainty in the wider economy.
Dell Products, which sells and distributes the group’s products in Europe, the Middle East and Asia (EMEA), said its revenue slid 14 per cent as ongoing economic difficulties hit demand. Total revenue for the period was $14.5 billion (€13.75 billion), down from more than $16 billion (€15 billion) in 2023.
Hardware sales remained the largest proportion of revenue. Dell said that fell to $13.5 billion for the year down from just under $16 billion a year earlier. Software sales totalled $401 million in the same period, while support service revenue was $573.5 million.
The bulk of revenue – $13.9 billion – came from its European customers, the accounts noted.
Operating profit was $82.6 million for the year to February 2nd, 2024, down from $90.8 million in 2023. A fall in input costs helped raise gross margins slightly, while profit on ordinary activities before interest and taxation fell $8 million year-on-year.
Pretax profit slumped as the company wrote down the value of its investments by $115 million. That brought pretax profit to $18.7 million, down from $130.3 million the previous year.
In note on the accounts, Dell said it had received a capital contribution from fellow group member Dell International Holding in October 2018. That $557.7 million contribution was a transfer of shares in a subsidiary company, Dell GmbH. An assessment by directors of their value determined the carrying value was in excess of the recoverable value, leading to the write-down.
A dividend of $47 million was paid to Dell Products by Dell GmbH, in line with the prior year. Dell Products also paid out a dividend of $47 million to Dell Global, which owns 99 per cent of the company, and Dell International Holding, which owns the remaining 1 per cent. That was a fraction of the $160 million recorded a year earlier.
Dell Products also received a capital contribution from its parent company of $589.8 million, in line with the previous year.
The company paid $11.6 million in tax, including $9.6 million in Irish corporation tax, and the remainder in foreign and other tax charges.
Dell Products employs close to more than 2,100 people, down from almost 2,200 in 2023. That was split between sales and distribution, which employed 1,220 people, and administration, which had 900 staff. The wage bill for the year was $240.4 million, up from $209.4 million, despite staff numbers dropping.
Including pensions and other remuneration, the total bill was €286.9 million for the year.
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