"We Do Not Sacrifice Margin"

Also CEO Wolfgang Krainz explains how the group is responding to rising PC prices. He discusses a potential collaboration with AI giants and the expansion into intelligent industrial products.

Marc Bürgi | Published: 9 June 2026 | Finanz und Wirtschaft (fuw.ch)

AI-translated from German. Original published in Finanz und Wirtschaft, 9 June 2026.

The Also Group set new targets for the coming years this spring. The ambitions are considerable — all the more notable given that the IT market is undergoing fundamental change driven by artificial intelligence. CEO Wolfgang Krainz explains to FuW how he intends to meet those forecasts: through new offerings in the Internet of Things (IoT), acquisitions, and partnerships with AI giants.

Mr Krainz, last year the Also Group only just met its financial targets. Will 2026 be a stronger year?

In 2025 we came in at the lower end of our guidance range — but we delivered what we promised. We have created a very solid foundation for further growth in 2026 and beyond. Last year we also acquired Westcoast, extending our operations into the United Kingdom.

After the UK, Germany is your largest market. The recovery hoped for in 2025 did not materialise there. How confident are you about Germany this year?

Germany was economically challenging territory last year. We saw delays in the large-order segment — public administration, in particular. The mid-market segment, which is our primary focus, fared quite well, unaffected by any government-order-driven dynamics. Overall it was a good year for us in Germany. Demand for software and cybersecurity is no longer directly tied to the broader economic cycle.

This year will be even better?

Absolutely. Germany is again a growth market for us this year, and I see an improvement in the German economy overall.

You are a major reseller of Microsoft products. Last year Microsoft imposed revenue quotas on its partners, prompting some of your competitors to chase contracts with aggressive pricing. You chose not to engage in price wars. Can you afford to walk away from business?

The pressure to meet thresholds in order to retain Microsoft contracts is something we feel in the entry-level segments — commodity products such as Office 365. We are moving away from that segment. Our focus is on the higher-value areas: Azure — Data Centre as a Service — Microsoft Security, and AI products. We are growing exceptionally well with Microsoft, this year included.

Global PC sales are expected to fall this year as prices rise on the back of a memory-chip shortage. How severely does that affect you?

As things stand, we are seeing solid demand across our customer segments and across geographies. Thanks to our proactive inventory build-up and close coordination with manufacturers, we have been able to meet that demand.

Can you pass on the price increases?

In principle, yes. When manufacturers raise prices, we adjust ours accordingly.

In other words: you do not sacrifice margin?

No, we deliberately do not sacrifice margin. The market situation is not a disadvantage — we benefit from it. On one hand, because we buy very strategically, in close coordination with manufacturers. On the other, we align demand closely with our customers so that we strike the right supply position in the market.

Is there a risk of miscalculating and building up excessive inventories?

We know from most of our customers what demand they will place on us in the coming months. In many companies, IT modernisation is generating substantial requirements — systems must be made compatible with AI products and software. In the current very favourable market environment, I have no concern that our inventory levels will become a problem.

You describe artificial intelligence as a major opportunity for Also. Isn't there also a risk of losing business to AI — for example, if customers develop their own AI applications rather than sourcing software through Also?

AI software in no way threatens our position. The software products Also distributes stand out precisely because they integrate seamlessly into corporate processes. Payment interfaces and billing interfaces are not easily replaced. For us, AI is unambiguously an opportunity — there is no ambivalence. Because AI is not only about software. It is also about the devices on which AI tools run: mobile devices, notebooks. When you look across these various themes, you quickly arrive at six to seven AI product categories that we cover and in which we can do business.

Your targets for 2029 are ambitious: a 50% increase in EBITDA compared with 2025. Bloomberg consensus suggests analysts do not believe you can achieve such a jump. How much optimism is built into that forecast?

We are very confident, because we know what growth mechanics we can deploy to develop the business profitably. Our recipe for success is the combination of organic growth and inorganic momentum — our acquisition policy, M&A. We have several levers that strengthen the profitability and resilience of our business model: the customer mix — we continuously analyse which customer groups we are growing with profitably; our product categories — we constantly examine where the greatest growth momentum lies; and our manufacturer relationships, where a dedicated team works permanently to optimise partnerships and bring new manufacturers on board.

Are you also pursuing collaboration with the new AI companies, such as OpenAI or Anthropic?

Every major AI solution provider will sooner or later ask how to reach the mid-market — small and medium-sized enterprises. We have deep relationships with SMEs across Europe and can serve as a distribution channel, acting as a multiplier for those providers' businesses.

Are concrete discussions with AI providers under way?

There are numerous points of connection, and we are in dialogue with a wide range of players. The time will soon come when we can announce new partnerships.

You have outlined the roadmap for meeting your 2029 targets. Less clarity exists around your acquisition strategy. In which regions and areas do you want to strengthen through acquisitions?

Our M&A activity has two directions. One is expanding our market share: we want to be a relevant player in every country where we operate, which is why we have bought distributors in Central and Eastern Europe over recent years. The other direction is broadening our technology offering — for example, in 2021 we acquired Ireo in Spain, a cybersecurity specialist, and subsequently made Madrid our cybersecurity centre of excellence.

Can you name a technology you would like to own?

We are interested in acquiring IT distributors in AI infrastructure and cybersecurity to strengthen our product and manufacturer portfolio.

Such technologies are in high demand. Aren't vendors in these areas commanding excessive valuations?

Also has the capital strength and balance-sheet capacity to finance acquisitions. What matters is always the business case and the distribution opportunity. We expect to recoup the invested capital within 24 months from every acquisition — that condition must be achievable for any deal to proceed.

Do you rule out another acquisition of Westcoast's scale in the near term? You paid around €0.5bn for that business last year.

Westcoast was a big step for us. I don't rule out deals of that size, but realistically it is not to be expected in the short term. We are, however, actively looking for acquisition opportunities.

You expanded your cloud marketplace into the US last year. Why do you believe you can succeed there, given that you are a small player in that market?

Over recent years, Also has been a cloud business pioneer in Europe — we have more than a decade of experience in this field. In the US, there are niches in distribution where growth is possible. We are not taking on established players; we are pursuing a differentiation strategy, looking for market segments that are not yet properly served.

In other words: the risk is manageable?

The risk is well controllable. The platform already exists — we simply adapt it to the conditions of the relevant country.

Let's talk about your shareholder structure. Düsseldorf-based Droege Group holds just over 50% — has the major shareholder committed to a long-term engagement?

Droege is a long-term investor by nature and has been a core shareholder since the merger of Also with Actebis in 2011. I have no signals that this would change.

At the March AGM, all resolutions were passed. Proxy adviser ISS had, however, raised criticism beforehand — among other things, it flagged that a majority of the board is not independent. Does Also have a corporate governance problem?

Our corporate governance is very sound. A strong team ensures that all standards and requirements are met. ISS's position is of course known to us and was taken into account in preparing the annual report. Recent months have shown that we are engaging more proactively with the capital markets: we have recognised that our business model needs to be explained more clearly.

Will you report quarterly on business performance from now on?

Yes — the response to our communications was so positive that we will communicate on a quarterly basis going forward.

The share price has fallen more than 10% since the start of the year. How concerned are you?

I expect our strong earnings trajectory to be reflected in the share price in due course. That said, we do not manage to the share price. Our aim is to grow capital returns and earnings over the long term — strong operational performance will ultimately benefit the share price too.

You are CEO and also head the DACH business. Is that dual role sensible?

I value this dual role greatly: the proximity to customers and markets means I pick up on certain dynamics quickly. Overall, Also is a company that is deeply rooted in the market and built close to its customers and manufacturers — that is one of the group's key success factors. We learn about emerging trends not just through market research but above all through direct conversations with customers.

You want to offer intelligent industrial products on your cloud platform — IoT products connected to the internet. A new collaboration is due to be announced soon. Now would be a good moment.

The timing is right, but unfortunately it is still a few weeks too early.

Can you describe what types of products are involved?

IoT is a high-growth business area. One example is the technology used to measure building occupancy: when many people are present, a signal is triggered that regulates entry, ensuring no further people enter the building. We are talking about a vast range of use cases — many objects we use in everyday life now emit signals.

What revenue volume are you targeting with IoT products?

We are talking about revenues in the three-digit million-euro range.