Australia’s largest locally owned distributor Dicker Data has burst past $2b in revenue for the 2020 calendar year as demand for remote work supercharged saies last year.
In the company’s full-year financial results released today, Dicker reported revenue growth of 13.6 percent throughout the calendar year, finishing at $2000.1 million.
Profit for the year was up 20.8 percent to $191.4 million, up from $158.4 million in 2019. The company told shareholders that margins increased significantly at 9.6 percent which was up from 9 percent the previous year. The company attributed this to a focus on the small to medium business community and the mid-market.
Australian revenue grew 12.9 percent and the New Zealand business saw its revenue grow at 23.3 percent. Close to three quarters of total revenue came from hardware sales which totaled $1.49b with a further $496 million coming from software and $11 million from services.
In hardware, PCs were Dicker’s biggest seller and accounted for $542 million dollars, up 25 percent year on year. This was followed by servers and storage which grew at seven percent. The third best performer in this category was peripherals and other products which contributed $226 million to the bottom line. Networking was close behind, adding $224 million and AV and UC was next contributing $77 million.
Recurring revenue was the star in the company’s software division with $435 million of the total $496 million in revenue coming from renewable or subscription software. Perpetual software license sales contributed $61 million.
Dicker Data’s CFO Mary Stojcevski told shareholders that at a sector level, the company maintained strong growth across business units.
She said hardware and support sales grew by $170.3 million (12.9 percent), software was up $66.8 million (15.6 percent) and services was the fastest growing unit, increasing $3.1 million (38 percent) in the year.
“With our software business, the strongest growth came from our recurring revenue products, increasing to $434.9 million [from $336.5 million in 2019] or 18.7 percent,” she said.
Company founder David Dicker said “the commitment of our people and the focus of the company in the last 12 months has demonstrated the flexibility of our business”.
“We continue to excel in a challenging environment and deliver a service to our vendors and reseller partner community that they value and is unmatched in the local market.”