Datatec Ltd Sa Unsp/Adr (DTTLY) Q4 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning. Today we are presenting our FY26 annual results in the normal format with divisional detail. I will start with a summary. Ivan the CFO will cover the financial results and then I will go through the divisional reviews and have some closing remarks. In summary, another year of excellent performance with AI investment fuelled growth in most of the areas we operate. Adjusted EBITDA grew at almost double the rate of both gross invoiced income and gross profit. Underlying earnings per share grew at double that rate again. This resulted in an almost four times leverage between top and bottom line growth. In turn, this has driven a record high ordinary dividend payment of 24 US cents or approximately 4 Rand per share. The environment recently has been far from normal. There seems to be a degree of decoupling between the AI-enabled digital world and more traditional non-technology industries. However, inflation, energy shortages and supply chain disruption could impact all areas of the economy. Our performance last year was exceptional, despite challenges in Latin America, where progress was also made. Our role as a digital channel organization spanning distribution and IT services covers a growing and critical segment of the industry. It was another high watermark of performance for both Wescon and Logicalis International. We operate in an ecosystem where AI is driving dramatic change and forcing organizations to rapidly retool their IT environments. The exponential power of the hyperscaler build-out is akin to the generational change brought about by Internet adoption. Organizations will need to invest to remain competitive. This investment will be profound as the reshaping of the traditional enterprise workplace will be transformative. We are adapting to thi...