Dicker Data has seen off another bumper year with revenue skyrocketing by almost a quarter to $2.5 billion.
Despite ongoing supply chain disruption, the Sydney-based distributor has posted Australian revenue of 16 per cent, while its New Zealand revenue grew by 128.7 per cent off the back of its $68 million Exeed acquisition.
For the full year ending 31 December 2021, Dicker Data also saw a 28 per cent rise in net profit after tax to $73 million.
According to its financial report to the Australian Securities Exchange (ASX), Dicker Data benefitted from the addition of nine new vendors to its portfolio, which added an incremental $54.7 million.
Operating costs for the reporting period grew by 15.2 per cent to $2.4 billion. However, Dicker Data claimed this was decreasing as a proportion of revenue as the "company continues to benefit from scale". As a proportion of revenue, costs fell to 4.7 per cent, while in 2020, they sat at 5.1 per cent.
"Our FY21 result represents over 43 years of experience and a significant growth trajectory," CEO David Dicker said. "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.
"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.”
Although Dicker Data said supply chain constraints from the COVID-19 pandemic would continue into another financial year, it was no longer a "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 available opportunities," the company report said.
Looking ahead, Dicker Data told shareholders that software was the highest growth opportunity for the company in FY22. Indeed, the company's software recurring revenues increased by 19.7 per cent to $520 million.
"Some of the most significant operational gains made by the company in the last 12 months have come from our digital transformation, led by investment into software development to streamline processes and increase overall efficiencies," the company reported.
Flexible working and the trend of working from anywhere will also continue to dominate Dicker's 2022 agenda both from a device perspective and security.
"The release of Windows 11 in October 2021 was met with positive reviews and is yet another key driver for accelerated device refresh as organisations look to leverage the latest technology to further their competitive edge whilst addressing security concerns in the process," Dicker Data told shareholders.
Professional Audio Visual (AV) is expected to deliver double-digit growth for Dicker in FY22 as offices return to opening.
This includes an increased demand in smart office technology, large format displays for shared spaces and meeting rooms along with the associated peripheral devices, such as Unified Communications (UC) headsets.
Last year, Dicker ramped up this area when it struck a distribution agreement in Australia and New Zealand (A/NZ) with audio visual (AV) hardware maker Neat.
It also expanded its relationship with Samsung, gaining access to its large format displays (LFDs) in Australia.
The distributor also claimed that 5G's adoption across Australia has spurred increased demand for networking products to harness its full capabilities and stronger storage solutions.
"We have been focused on ensuring we represent the vendors with the leading technology solutions to support our network of partners to capitalise on the infrastructure opportunity from the edge, to the core, to the cloud," the company added.