Dicker Data eyes new opportunities as Kiwi revenue and profit soar
Dicker Data has recorded bumper revenue and profit for the 2015 financial year, with the distributor’s New Zealand business recording a 20% increase in revenue.
The Kiwi revenue was up AU$21 million to AU$124.4 million with local profit before income tax of $4.9 million and profit after tax of $3.5 million.
In New Zealand sales of good contributed $123.7 million.
The Kiwi gains come as Dicker Data records record revenue and profit for the overall operations with full year revenue of $1.07 billion and net profit of $31.6 million.
Australian revenue was up 15%, or $116 million. The distributor also saw a massive boost for its services division, which grew 81%, or $2 million.
Dicker Data says it saw strong growth across hardware and software, at 13% or $99 million, 22% or $38 million.
The company says it plans to continue strengthening its enterprise capabilities across Australia and New Zealand with both existing vendors and new vendors, which it says will provide ‘strong technology differentiation and innovation’.
“Our customer partners will benefit from the expansion of our value add offering as we further enhance our cross-vendor enterprise expertise and resources beyond single vendor architecture.”
The company also has its eye on emerging technologies such as hyperconvergence infrastructure, software defined storage and internet of things.
The distributor says it will also continue to invest in its cloud strategy, onboarding traditional and non-traditional IT vendors with strong cloud product offerings.
“We are also investing in internal resourcing and structures to ensure we offer best channel cloud enablement programs to our partners,” the distributor adds.
The company is also eyeing up an expansion beyond the traditional IT customer base, investing in vendors who cross over the IT, security and surveillance, electrical and audio digital markets.
“[We] see an opportunity to integrate into this parallel market.”
Dicker Data says a handful of vendors acquired with the 2014 Express Data acquisition were not aligned with the distributor’s core vendor strategy and have since been divested, something the company says represents a reduction in revenue of $27.1 million from last financial year.
Express Data vendor’s retained by Dicker Data saw a 33% growth in 2015. Pre-acquisition vendors saw growth of 6.4% year on year, while new vendors added during 2014 contributed $12.5 million over the previous corresponding period after their first full year of trade.
Dicker Data says it onboarded 11 new vendors last year, with those vendors contributing an incremental $16.9 million.