Dicker Data grows revenue and profit in FY23

Dicker Data has reported growth in revenue and profit for the full year ending 31 December 2023, citing contributions from its access and surveillance division and recent acquisitions.

The company grew gross revenue by 5.6 per cent to $3.28 billion in 2023, while increasing net profit after tax by 12.5 per cent to $82.15 million.

Dicker Data partly attributed its revenue increase to a full 12 month's contribution from its Hills Security and IT division, which was acquired in May 2022, with the balance attributable to organic growth from existing and new vendors. 

That division together with its February 2023 Connect Security Products acquisition in New Zealand contributed $70.50 million in sales. 

Dicker Data's software sales, which now make up 27.5 per cent of its overall business, grew 10.6 per cent to $900.3 million, while services revenue increased 4 per cent to $12.3 million.

Meanwhile, the company's hardware and virtual services sales grew 3.5 per cent to $2.36 billion.

"We continue to see strong growth in both subscription and recurring revenue software businesses, reflecting the ongoing trend toward recurring revenue models by vendors, as well as Dicker Data’s increased market share," Dicker Data told shareholders.

Access and surveillance division growth

Dicker Data's access and surveillance division reported revenue of $153.3 million, up from 82.8 million, which included a $6.7 million contribution via its Connect Security Products acquisition.

In 2023, the division completed a branch network overhaul covering 10 sites across Australia, including the launch of four new locations and six renovations, while also being integrated into Dicker Data's Kurnell distribution centre

"In addition to the brands acquired in NZ, the division added six new brands to its offering, including, I-Pro, Ajax and Halo, whilst in the IT segment added Eaton, Watchguard and leading enterprise storage vendor, NetApp."

"The division has now successfully completed integrating all previous access and surveillance acquisitions and has created a foundation for accelerated growth in FY24 and beyond, marked notably by the addition of Hikvision, the world’s second-largest surveillance vendor by market share, in February 2024."

Partner growth and new partnerships

In 2023, Dicker Data increased its active partners in Australia by 20 per cent to over 10,000, while its active partners in New Zealand grew by 15 per cent to 2,300.

The company also secured partnerships with AJAX, Cloudflare, Eaton, NetApp, Netgear, Riverbed and WatchGuard, among others, and expanded its Australian distribution agreement with Juniper into New Zealand.

“The last few years have been somewhat difficult. Last year, another one. However, we still increased gross sales by over 5 per cent and after tax profits by 12.5 per cent," Dicker Data's CEO David Dicker said.

"Our NZ operation continues to improve and our security business has great growth potential. All in all, a very satisfying result, especially when compared to our direct competitors, and the more general market."

"Things are starting to look up on the generalfront and 2024 looks promising."