Profit surge for Dicker Data on strong demand in H1 FY23

ASX-listed Dicker Data has recorded strong earnings results for the first half of its 2023 financial year, with earnings and net profit before tax increasing 16.4 and 8 per cent respectively.

This comes on strong revenue growth, registerering an increase of 9.4 per cent over the June 22 period to reach $1,596 million.

The distributor's access and surveillance (DAS) businesss contributed $73 million, and delivered a profit contribution for the second quarter of 2023.

Dicker Data said the latest fiscal period shows the strongest indicators yet of a normalising supply-side market, following nearly three years of continuous disruption and chip shortages.

Adding to the revenue increase in 1H FY23 was improved backorders, although the total value of these still remain over $200 million, Dicker Data said.

Some 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.

Dicker Data was able to capitalise on demand for data centre infrastructure, networking and storage products, and increase its software business, to offset the decline in certain technology segments.

Software in particular continues to outperform expectations, Dicker Data said, with 21 per cent growth in the first half.

Overall, demand from Dicker Data's more than 10,200 partners in Australia and New Zealand remains strong, on the back of a healthy appetite for digital transformation by businesses on both sides of the Tasman.

The distributor said investing in building a highly diversified range of technologies and brands has underpinned its resilience in the first half of 2023, and Dicker Data continues to benefit from market convergence as the role of technology in helping businesses and governments achieve their goals grows.

For this year, Dicker Data said cyber security continues to be a focus for all sectors with Zero Trust and Secure Access Service Edge (SASE) enabling secure, compliant and protected technology environments.

Automation, machine learning (ML) along with data capture and analytics tools are expected to see high levels of growth, Dicker Data said.