Dicker Data hits $2.5b revenue with nine new vendors

By on
Dicker Data hits $2.5b revenue with nine new vendors

Distributor Dicker Data has posted another bumper year with revenue and profit growth driven by the addition of new vendors and contributions from its New Zealand operations.

In the 12 months ended 31 December 2021, Dicker Data reported revenue of $2.5 billion, a 24.2 percent year over year increase from $2 billion, and net profit after tax of $73.6 million, a 28.6 percent increase from $57 million in 2020.

The growth was fuelled by the addition of nine new vendor partners during the period, an increase in software recurring revenue and the New Zealand business more than doubling its revenue. The new vendors contributed an incremental $54.7 million, while software recurring revenue increased 19.7 percent to $520 million. The NZ business grew by $184.1 million, or a 128 percent year over year increase.

“Our FY21 result represents over 43 years of experience and a significant growth trajectory. Since being listed on the ASX on 24 January 2011 at an initial market cap of $25 million, today shares have recently traded around $14 with a market cap of just under $2.5 billion,” Dicker Data boss David Dicker said.

“This solidifies the company’s status as a true Australian success story and a fast growing and high-returning stock. The commitment of our people and the focus of the company over the last twelve 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.”

Chief financial officer Mary Stojcevski said Dicker Data finished its 2021 financial year in a strong financial position, especially following its recent acquisitions.

“Our acquisition of the Exeed Group across ANZ will enable the company to benefit from cost efficiencies as a result of the combined entity’s scale, and we expect to realise these gains in this area as the integration of the New Zealand business is completed in the first half of 2022,” Stojcevski said.

“Furthermore, our acquisition of the Hills Security and Information Technology division represents an opportunity to further diversify the Company’s vendor and reseller partner concentration.”

Looking ahead, Dicker Data expects to see more digital transformation efforts as the adoption of technology continues to ramp up. Software in particular is the company’s highest growth opportunity for Dicker Data, citing research from Context Research that predicts 25 percent year-on-year growth in software for all distributors globally, driven predominantly by hybrid cloud adoption.

“Dicker Data has worked closely with the world’s leading vendors to ensure business continuity for our reseller partners and their customers. As this next phase of digital transformation evolves, the role of IT distribution will be an essential component for every business, be it directly with our partners or indirectly via other means,” the announcement read.

“Dicker Data is well-positioned to capitalise on the opportunity ahead as it continues to work as strategic partners with resellers and be the vital link to the technology value and supply chain.”

The company added that while it expects supply constraints to continue until “at least mid-2022”, Dicker Data said it “is not of significant concern”.

“We have demonstrated a strong level of resilience over the last two years and are well-versed in navigating and performing in this disruptive environment, all whilst maximising the available opportunities,” it told shareholders.

Got a news tip for our journalists? Share it with us anonymously here.
Copyright © CRN Australia. All rights reserved.

Most Read Articles

Log In

  |  Forgot your password?