Dicker Data has reported another round of healthy sales and profits, boosting revenue by 10 per cent to reach $1.2 billion for financial year 2016.
Coupled with a 24.5 per cent increase in operating profit to $36.6 million, the distributor delivered its “most successful year ever” for the 12 months ended 31 December 2016.
In a statement released via the ASX, the Sydney-based organisation also reported a gross profit of six per cent, alongside a 25 per cent boost in net profit after tax.
“Financial Year 2016 was our most successful year ever,” Dicker Data Chairman and CEO, David Dicker, said.
“A pretty good result for a company not considered a growth stock. A very satisfying outcome.”
The latest round of financials come six years after the distributor first listed on the ASX, with an IPO share price of 20 cents and a market cap of $25 million.
“As I write this, our share price is $2.32 with market capitalisation of $371 million,” Dicker added.
“I think we have provided our shareholders with a very solid return. As I said in last year’s letter, 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.”
Specifically, the revenue for the consolidated entity for the 12 months to 31 December 2016 was $1,185.5 million (2015: $1077.6 million), up by $108 million (+10.0%) and in line with expectations.
“Since completion of the Express Data Holdings acquisition and integration in 2014, Dicker Data has continued to add new vendors and increased the breadth of products offered by existing vendors, whilst still driving growth and market share in its existing vendor portfolios,” Dicker added.
Of the existing vendors, the distributor reported growth of $51.1 million (+4.8 per cent), with new vendors added during 2015 contributing growth $32.5 million (+173.5 per cent) after the first full year of trade.
According to findings, a total of eight new vendors were on-boarded during 2016 and contributed an incremental $25.1 million.
Meanwhile at a country level, Australia grew $105.5 million (+11.1 per cent) and New Zealand grew $3m (+3 per cent).
From a sector perspective, Dicker Data maintained strong growth in hardware (+$86 million, +10 per cent), software (+$10 million, +5 per cent) and services (+$1 million, +26 per cent), and have added the storage business unit which contributed +$11 million to growth.
Currently, Dicker Data serves a market of over 6,500 active resellers, with 55 vendors making up the distributor’s portfolio on both sides of the Tasman.