Ingram Micro Holding Corp

EMEA

Net sales were $3.9 billion, an increase of 7.3% compared to the prior fiscal third quarter. The year-over-year increase in EMEA net sales was driven by 24% growth in Advanced Solutions led by growth in server and storage net sales, and 39% growth in Cloud-based Solutions, partially offset by a 1% decline in Client and Endpoint Solutions. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 1% on the year-over-year net sales comparison.

Income from operations was $67.8 million, compared to $62.0 million in the prior fiscal third quarter and adjusted income from operations was $75.1 million compared to $69.5 million in the prior fiscal third quarter, representing increases of 9.4% and 8.1%, respectively.

Income from operations margin was 1.72%, compared to 1.69% in the prior fiscal third quarter. The year-over-year increase in income from operations margin was driven by a decrease in expenses as a percentage of net sales in the region, including a 10 basis point reduction in compensation and headcount expenses and a 4 basis point reduction in rental and occupancy costs. These were partially offset by a decline in gross margin due to a shift in sales mix towards lower-margin product sets.