Dicker Data profit skyrockets 570%

Dicker Data has seen profits skyrocket in its first year as a billion-dollar company.

Revenue was up 15 percent to $1.1 billion for the 12-month period ending 31 December 2015. The distributor's net profit after tax also jumped from $3 million to $20.4 million, an increase of 570 percent.

It was a huge 12 months for the home-grown distributor in the first full year since its acquisition of Express Data. Sales from the vendors it acquired from Express Data grew 33 percent, a rise of $114.1 million. Pre-existing vendor sales also grew 6.4 percent, growth of $22.9 million.

CRN revealed back in December that Dicker Data had cracked through the billion-dollar threshold. The scale helps position Dicker against the country's two biggest disties, Ingram Micro and Synnex, which both turn over more than $2 billlion per annum.

The results published to the ASX today mark the first full year since Dicker Data transitioned its year end from 30 June to 31 December, in order to “more closely align the financial year with the company’s trading year”.

New vendors

In total, Dicker lured 11 new vendors to its portfolio this year, including Lenovo’s server business, Intel, Nimble Storage, Paessler, Nuance Communications and BitTitan.

Dicker also gained access to the combined Hewlett-Packard Enterprises and Aruba Networks portfolio when the vendor rearranged its distribution partners earlier this month.

Dicker’s push into software also started to pay off, with sales growing 22 percent to $38 million. This year, Dicker took the wraps off its cloud marketplace, covering infrastructure, business continuity, security and compliance, applications and services from 13 vendors.

The company recently forked out $18 million for an additional 17 hectares to expand its Kurnell facility.

Chief executive David Dicker thanked staff for their work throughout the year in his letter to shareholders. “We exceeded $1 billion dollars in sales and more importantly we made $31.6m of net profit (before tax).

“We had set a goal for 2015 of over $30m and initially projected $30.9m. We were able to comfortably exceed that. A very satisfying outcome.”

“I’d like to thank all our people for doing an outstanding job and I hope they are as proud and happy as I am with the result.”

Shares were holding steady at $1.50 at 11am on 29 February.