Dicker Data exceeds Q1 revenue growth to hit $674M
- 11 May, 2022 16:30
David Dicker (Dicker Data).
Publicly listed Dicker Data has seen revenue in the first quarter of 2022 increase by 50.5 per cent from $448 million at the same time last year to $674 million.
In the three months to March, net profit shifted 22.7 per cent up to $24 million when compared to the previous corresponding period. Revenue split between Australia and New Zealand was $535 million and $139 million respectively.
A majority of the increase was attributed to the full quarter contribution from the Exeed acquisition that wasn’t present in the comparative quarter, which contributed $90.3 million in revenue.
The operations of both businesses will be consolidated into one location by the end of May. The new warehouse facility in Manuka, New Zealand will provide 128 per cent more warehouse space following the carbon neutral development of the facility.
Dicker Data will also relocate its New Zealand office to a new state-of-the-art facility in Parnell, Auckland.
Increased demand for virtual capabilities and accelerating digital transformation projects led to existing and new vendor relationships delivering $135.5 million in incremental revenue.
Supply chain disruptions and the introduction of the retail business in New Zealand impacted gross margins, dipping to 8.6 per cent.
Dicker Data CEO and chairman David Dicker said with the two acquisitions almost fully integrated, he was confident in maintaining the foundations required to continue to deliver growth.
Following its acquisition of the Hills Security and IT division for $19.35 million, Dicker Data officially launched its Access and Surveillance (DAS) unit in Australia with Chris Price as general manager.
“The company’s performance in Q1 was outstanding with revenue growing by more than 50 per cent and profit before tax growth at over 22 per cent year-on-year. A result that’s a testament to the great people in our business,” he said.
“Despite only moving into our new headquarters last year, more than doubling our warehouse capacity at the time, I’m pleased to report that we are already in the advanced planning stages for the expansion of the warehouse in Kurnell, which will support the expected growth in the coming years."
The distributor expects chip shortages and supply chain limitations to continue into the near to medium term, but has assured that the resiliency in its operations and learnings continue to place Dicker Data in good stead to navigate through the continued disruptions.
Dicker Data CFO Mary Stojcevski added that there was increased pressure on cash.
“Our team is focused on prudent balance sheet management to ensure there are no finance-related impediments to our future growth,” she said.
The distributor also pointed out it was growing its reseller count who purchase online as it continues along its own digital transformation path with a strong focus on partner experience.
For the rest of the year, cyber security will continue to be a key focus particularly around zero-trust along with areas such as automation, machine learning, data capture and analysis tools.
“While we expect sustained stock and logistical challenges, we have proven systems, processes and people who have shown tremendous resiliency that will enable the company to continue to outperform the technology distribution market across Australia and New Zealand,” Dicker Data COO, Vlad Mitnovetski said.
“Our Q1 results set the tone for another successful year and the entire team are committed to delivering the best possible results in our FY22.”