Synnex New Zealand lifts profit as revenue barely grows
Synnex New Zealand reported higher annual profit for the year ended 31 December 2025, as improved margins offset largely flat revenue.
Revenue edged up to NZD $185.01 million from NZD $183.20 million a year earlier, indicating limited top-line growth across the distributor's operations. Revenue from customer contracts remained the main source of income, while other income fell sharply to NZD $34,380 from NZD $439,493.
Net other gains rose to NZD $128,302 from NZD $81,707. Inventory movements also supported results, shifting to a positive NZD $4.08 million after a negative adjustment in the previous year.
That lifted profitability even as several costs increased. Purchases of goods and consumables rose to NZD $175.79 million from NZD $170.53 million, while employee benefit expenses increased to NZD $4.55 million from NZD $4.28 million.
Depreciation and amortisation rose to NZD $1.53 million from NZD $1.48 million. Freight costs also increased slightly to NZD $1.53 million from NZD $1.47 million, while other expenses were broadly stable at NZD $1.81 million.
Profit growth
Lower borrowing costs provided further support. Finance expenses fell to NZD $821,474 from NZD $1.20 million, while finance income declined to NZD $91,699 from NZD $156,103.
Net finance costs improved to NZD $729,775 from NZD $1.04 million, helping lift profit before income tax to NZD $3.31 million from NZD $2.25 million.
Income tax expense increased to NZD $818,093 from NZD $606,473. Net profit rose to NZD $2.49 million from NZD $1.65 million, and total comprehensive income matched net profit.
The result reflects a year in which margin gains mattered more than revenue growth. Lower finance costs and improved stock-related movements offset higher employee, freight and depreciation charges.
Cash flow
Cash generation from operations weakened markedly during the year. Net cash inflow from operating activities fell to NZD $499,244 from NZD $9.70 million in 2024.
Customer receipts declined to NZD $178.52 million from NZD $191.13 million. Payments to suppliers and employees were NZD $176.98 million, slightly below NZD $180.40 million in the previous year, while taxation paid rose to NZD $818,093.
Interest received totalled NZD $91,699, and interest paid was NZD $318,607. There were no investing cash flows during the year and no payments for property, plant or equipment.
Financing activity offset the weaker operating cash flow. Net cash inflow from financing activities was NZD $817,843, compared with an outflow in the prior year, as borrowings contributed NZD $2.20 million following a repayment of NZD $7.35 million in 2024.
Lease liability payments, including principal and interest, totalled NZD $1.38 million. Cash and cash equivalents increased to NZD $7.73 million at year end from NZD $6.42 million.
Balance sheet
Total assets rose to NZD $97.71 million from NZD $85.92 million. Current assets increased to NZD $89.03 million, led by inventories of NZD $30.74 million, up from NZD $26.65 million, and trade and other receivables of NZD $50.56 million.
Non-current assets slipped slightly to NZD $8.68 million. Plant and equipment fell to NZD $122,016 from NZD $546,187, reflecting limited investment, while right-of-use assets increased to NZD $8.13 million.
Total liabilities rose to NZD $83.59 million from NZD $74.29 million. Current liabilities increased to NZD $66.06 million, driven by trade and other payables of NZD $35.22 million and finance liabilities of NZD $29.50 million.
Equity increased to NZD $14.12 million from NZD $11.63 million. Retained earnings rose to NZD $6.05 million after the year's profit, while contributed equity remained unchanged at NZD $8.08 million.
Synnex New Zealand ended the year with higher earnings, a larger asset base and increased retained profit, but also a sharp slowdown in operating cash inflow and higher liabilities.