Menu
Dicker Data hits A$116M revenue in New Zealand

Dicker Data hits A$116M revenue in New Zealand

The distributor’s trans-Tasman business as a whole generated nearly A$1.8 billion revenue during the year

David Dicker (Dicker Data)

David Dicker (Dicker Data)

Credit: Dicker Data

Dicker Data’s New Zealand operation pulled in A$115.9 million in revenue during the company’s financial year ending 31 December 2019, with the distributor’s trans-Tasman business as a whole generating nearly A$1.8 billion revenue during the year. 

The Australian-listed distributor reported New Zealand earnings before interest, tax, depreciation and amortisation (EBITDA) of A$1.8 million for the year, and profit after income tax of A$825,000 in the country. 

Across the entire company, Dicker Data ended 2019 with growth across all metrics, including after-tax profit, which rose by 67.3 per cent up to A$54.3 million.

Revenue also increased by 17.9 per cent, with Australia growing revenues at 16.8 per cent and New Zealand at 38.4 per cent, totalling nearly A$1.8 billion. 

As detailed in the directors’ report submitted to the Australian Securities Exchange (ASX), the distributor's software business saw the sharpest growth of 38.5 per cent to A$429.1 million, followed by hardware at 12.6 per cent to A$1.3 billion and then its services business rising by 6 per cent to A$8.1 million.

Within software, the strongest growth was seen in its recurring revenue products, which increased by 47.9 per cent up to A$366.5 million.

While profitability increased, so too did operating costs, rising by 8 per cent to A$86.8 million, due to an increase of salary related expenses.

Commenting on the results, the distributor's CEO  David Dicker, called the results “truly outstanding” and “an incredible outcome”.

Dicker said the acquisition of Express Data back in 2014 had been a highlight, claiming that it has more than doubled its profit from initial targets.

“When we acquired Express Data in 2014 one of our goals was a A$30 million profit in the first year of operation,” he said.

“There were doubters that we could do that, but we achieved it. In just five years we have more than doubled what seemed like a pretty ambitious target.”

The sale of Dicker Data’s current distribution location in August 2019 to make way for a larger one contributed to a profit of A$12.2 million, which the CEO said was a “winning strategy.”

“We built 230 Captain Cook Drive for approximately A$24 million in 2010, while the commercial property market was in a severe down-turn, but we rode it out,” he said.

The construction of the new distribution centre is expected to be completed by the end of 2020.

Later in 2020 we will be moving next door into a new, improved and virtually double sized facility. The close proximity will also help with a very efficient move.

While not going into specifics, the distributor also plans to capitalise on the “momentum and opportunity ahead as businesses now look to further accelerate the time to realising their goals through further investment into technology.”


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Dicker Data

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments