Dicker Data reported a 2.9% increase in FY24 gross revenue to $3.37 billion with stable EBITDA, while FY25 starts strong with 17.4% sales growth driven by AI and Windows 10 refresh demand.
- FY24 gross revenue up 2.9% to $3.37 billion
- EBITDA stable at $150.4 million, slight net profit dip
- Australian sales grew 3.0%, New Zealand sales up 1.9% with margin gains
- Fully franked FY24 dividend of 44.0 cents per share declared
- FY25 YTD sales surge 17.4%, driven by AI, Windows 10 refresh, cybersecurity
Solid FY24 Performance Amid Market Challenges
Dicker Data Limited (ASX: DDR), a leading Australian technology distributor, has delivered a steady financial performance for the fiscal year ending 2024. The company reported a 2.9% increase in gross revenue to $3.37 billion, reflecting resilience in a competitive market environment. EBITDA remained largely stable at $150.4 million, down marginally by 0.2%, while net profit before tax declined 2.8% to $113.2 million. Despite these slight dips in profitability, the company maintained a consistent gross margin of 6.0% and a net margin of 3.4%, underscoring operational discipline.
Australian gross sales grew 3.0%, a notable achievement given the competitive pressures, while New Zealand sales increased 1.9% with improved gross margins rising from 7.6% to 8.5%. The New Zealand segment also saw a 13% increase in EBITDA and a 41.8% jump in profit before tax, highlighting strong regional momentum.
Dividend and Capital Management
Dicker Data declared a fully franked FY24 dividend of 44.0 cents per share, slightly down from 45.0 cents in FY23, reflecting a cautious but shareholder-friendly approach. The company plans to continue paying interim dividends quarterly in FY25, with the first interim dividend of 11.0 cents per share declared in May 2025. The dividend reinvestment plan remains in place, offering shareholders flexibility.
On the balance sheet front, working capital increased modestly to $397.4 million, supported by higher inventory and receivables. Borrowings rose to $320 million, reflecting an increased facility limit with Westpac to support growth initiatives, including investments in AI infrastructure and vendor diversification.
FY25 Momentum Fueled by AI and Technology Refresh
The company’s FY25 year-to-date results through April 2025 show a robust 17.4% increase in gross sales to $1.12 billion, with gross profit up 5.2%. EBITDA remained steady at $44.1 million, and profit before tax was broadly flat, indicating stable operational performance amid growth. Margins have softened slightly to 9.1% gross and 2.9% net, attributed to a shift in revenue mix and lower enterprise contribution early in the year.
Dicker Data is capitalizing on several growth drivers, including the Windows 10 refresh cycle across Australia and New Zealand, with strong uptake of higher-value AI-enabled PCs. The company has also made meaningful strides in artificial intelligence, contributing an incremental $30 million in revenue year-to-date. Strategic partnerships, such as the AI partnership factory in Melbourne with Dell Technologies and the appointment as a distributor for Vast Data, are expanding its AI ecosystem footprint.
Cybersecurity remains a key growth area as businesses increasingly invest in protecting against evolving threats. The company’s diversified vendor base, which has reduced reliance on its top five vendors from 90% in FY12 to 42% in FY24, positions it well to capture opportunities across adjacent markets and technology segments.
Outlook and Strategic Positioning
Looking ahead, Dicker Data is optimistic about its prospects despite ongoing economic headwinds. The company expects revenue growth to moderate as the year progresses but anticipates profitability to strengthen toward historical levels. Key focus areas include expanding AI infrastructure sales, capitalizing on SMB and mid-market demand, and leveraging vendor synergies.
Dicker Data’s continued market share gains in Australia and New Zealand, combined with its proactive diversification and innovation strategy, suggest it is well placed to navigate the evolving technology distribution landscape. The company’s emphasis on long-term vendor relationships and customer-first approach remains central to its growth ambitions.
Bottom Line?
Dicker Data’s steady FY24 results and strong FY25 start underscore its resilience and strategic focus on AI and cybersecurity as key growth engines.
Questions in the middle?
- How will Dicker Data manage margin pressures amid shifting revenue mix in FY25?
- What impact will increased borrowings have on the company’s financial flexibility?
- How significant will AI infrastructure sales become in the company’s overall revenue mix?