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Industry insider news for New Zealand's technology resellers
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AU$58 million and counting for Dicker Data NZ 2015 revenue

By Heather Wright
Mon 7 Sep 2015
FYI, this story is more than a year old

Dicker Data’s New Zealand operations contributed AU$58 million to the distributor’s ANZ revenues in the first half of 2015.

Sales of goods amounted to AU$57 million, with the company logging profit after income tax of AU$1.9 million for the Kiwi operations. 

Across Australia and New Zealand, the distributor reported revenue of AU$531.5 million for the six months, with profit after tax jumping more than 500% to AU$10.1 million – up from just AU$1.6 million in the December half year. Gross profit was up 17.1% over the previous half and 45.6% over the corresponding half in 2014.

The interim financial report for the half year also shows that the Kiwi operations recorded total revenue of AU$68 million for the six months to 31 December 2014, with profit after income tax of AU$1.7 million for the period.

The distributor says its key initiatives for the second half of 2015 include business development of its new vendors including Toshiba and continuing to leverage Dicker Data’s volume business expertise in Australia into the Dicker Data New Zealand business.

Last month Phil Presnall, Dicker Data New Zealand general manager of sales and marketing, told ChannelLife that the distributor was on the hunt for more resellers as it revamped itself with a heavier focus on the volume and cloud spaces.

Presnall says he wants to see one-third of the company’s business coming from the volume space, where it added Toshiba to its line-up earlier this year.

Cloud is also a driving force for the company as it moves forward, with Presnall saying he wants a third of the business coming from software and cloud.

While the company has launched its CloudPortal in Australia, it is yet to do so locally.

The final third will come from the networking side of the business, he says.

With the company now rebranded from Express Data to Dicker Data, Presnall says going forward we’ll also be seeing a much more high profile stance from the company.

While the company didn’t break out its local vendor sales locally, it says its overall revenue was driven by increases in its key vendors, with Cisco – its largest vendor under the Express Data acquisition – increasing 13.3% to AU$152.3 million, with most of the upside in the current June quarter ‘largely due to cross-sell opportunities to our existing pre-acquisition customer base’.

Under the HP group – Dicker Data’s largest vendor pre-acquisition – total revenue was AU$145.9 million, up AU$7 million with a number of successful campaigns in the second quarter around incentive based end of year June promotions helping lift revenues in the current period.

Dicker Data says all other vendors continued to grow with volume, software and other vendors contributing AU$231.0 million in the current period.

Key vendors Lenovo and Toshiba had a strong first half and the addition of new vendors during the period helped strengthen the overall revenue position, the company says.

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