NZ profit soars for Distribution Central
Distribution Central has racked up a dramatically improved profit in New Zealand for the 2014 financial year.
The distributor saw profit soar from $129,636 in 2013, to $855,168 for the year ended 30 June, 2014. The profit came on the back of revenue of $18.6 million, up from $17.2 million the year before.
Cost of sales remained relatively stable at $15.9 million, up from $15.8 million the previous year.
The results come as Distribution Central signs a number of new vendors, including SanDisk, SimpliVity and an expanded Fujitsu deal.
In September the company was named APAC Distributor of the Year for Palo Alto Networks – a vendor the distributor has only had on its books for a year.
A year ago Nick Verykios, Distribution Central managing director, attributed that year’s bumper growth at least in part to an exclusive NetApp deal signed in late 2012.
Yesterday that deal ceased to be exclusive, with Westcon Group appointed as a second distributor for the vendor across the New Zealand and Australian markets.
Verykios has previously said he expected NetApp to contribute over half of Distribution Central’s revenue for 2014. When the review of NetApp’s distribution was announced in May, Verykios maintained that the relationship with NetApp was ‘substantial’ and that the distributor would continue to invest in NetApp, exploring new product and market opportunities while enhancing the current business.
Overall Distribution Central announced its largest-ever revenue - $275.8 million – for FY2014, along with a record profit of AU$5.9 million.