Dicker Data’s revenue has risen by 5 per cent to $1.1 billion for the first half-year period ending 30 June 2023.
The revenue increase takes into account its decision to acknowledge software licences and virtual services as an agency fee made up of standard commission and other incentives driven by volume and other metrics.
The first half revenue contribution from the Dicker Access and Surveillance (DAS) business was $73 million, which includes the addition of new vendors in this segment.
Gross sales rose by 9.4 per cent year-on-year to $1.59 billion, which presented a record year for Dicker Data.
The sales increase is also partly attributed to a full six-month contribution from the Hills acquisition which was completed on 1 May 2022, with the balance attributable to organic growth from existing and new vendors.
Meanwhile, net profit before tax hit $54.1 million, rise of 7.8 per cent year-on-year, despite operating costs increasing by 16.3 per cent.
Dicker Data told shareholders that supply chain disruptions have begun to ease with H1 sending the “strongest signals yet” of a normalising supply market. However, the total value of open back orders still remains “well above” $200 million.
“Profitability in our first half improved by over 7 per cent and inventory holdings decreased as the supply chain disruptions of recent years abated,” said Mary Stojcevski, Dicker Data CFO.
“The company’s net debt position remained flat despite continued growth and a small increase in net working capital investment.”
Demand from the Company’s base of over 10,200 partners across Australia and New Zealand (A/NZ) has remained strong, the distributor claimed.
However, the performance of certain technology segments, such as devices, continued to be impacted by accelerated technology refresh cycles undertaken by businesses and governments in recent years to enable hybrid work.
However, portfolio diversification allowed Dicker Data to offset the decline in certain technology segments and “meet the emerging needs of the A/NZ market with growth in others” such as networking, data centre infrastructure and software.
The distributor reported that software continues to outperform expectations, with 21 per cent growth in the half.
“Our strategy of building a highly diversified business played a key role in our success in the first half,” said Vlad Mitnovetski COO.
“Our role in enabling the digital transformation of Australian and New Zealand businesses, governments and communities requires us to represent a wide range of technologies and as IT continues to converge with many adjacent markets, we are well-placed to continue expanding to meet the evolving technology needs of the markets we service.
"Also, as the technologies we represent become increasingly complex and interconnected, our role as the technical and sales enablers for our partners continues to grow.”
New additions to the Dicker portfolio this year included Cloudflare, NetApp and Ajax. Dicker said the acquisition of Connect Security Products in New Zealand has been integrated into the business, adding 548 new incremental reseller partners and 14 staff transitioning across.