Dicker Data (ASX:DDR) share price hits record high following strong interim results

The company's shares are on the rise today…

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The Dicker Data Ltd (ASX: DDR) share price is moving into uncharted territory this morning. This comes after the company released its FY21 half-year results before market open today.

At the time of writing, Dicker Data shares up 4.26% to a record high of $16.41 apiece.

Let's take a closer look to see how the IT distributor performed for the period.

Dicker Data share price soars after achieving growth across all key metrics

The Dicker Data share price is advancing following the company's interim result for the 12 months ending 30 June 2021. Here are some of the key highlights:

What happened in FY21 for Dicker Data?

Investors are buying up Dicker Data shares as the company registered a solid scorecard for the first half of FY21.

Dicker Data maintained its upwards revenue trajectory, despite the supply constraints such as the global chip shortage.

At the country level, Australia grew revenues by $50.2 million, up 5.4%, and New Zealand by $13 million, up 18.8%.

During the period, the company added 5 new vendors which accounted for incremental revenue of $14.5 million. Of the existing vendors, sales lifted by $46.2 million, up 4.6% on the prior corresponding period.

Overall, profit increased as a result of growth in other income and lower interest costs.

What did management say?

Dicker Data chair and CEO David Dicker, commented on the solid achievement, saying:

We are pleased with the HY21 results which represents over 43 years of the company's consistent and strong results. Despite ongoing changes in the current environment, we're operating in, we will continue to focus on executing strategic decisions that ensure we continue to grow, meet challenging requirements and deliver value-added services to our vendors and reseller partners.

The recent Exeed acquisition further demonstrates the commitment to take on new opportunities, deliver results for our people, investors, resellers and uphold our value proposition. Our recent record share price further consolidates our place as Australia's leading distributor and a fast growing and high returning tech stock.

What's instore for Dicker Data in FY22?

Looking ahead, Dicker Data advised that FY22 is expected to be a bumper year as Australia's lockdowns accelerate digital agendas.

The company noted that demand for its technology and value-added services remains robust. This is underpinned by government incentives for IT hardware, software and internet services in the small-to-medium business market. Ongoing uncertainty in the economy has led business to adopt a remote and digital workforce.

In addition, the global chip shortage is expected to continue for the foreseeable future as manufacturers work to manage the available inventory. Despite the current challenges, Dicker Data is experiencing strong demand with a number of backlog of orders to fulfil.

It noted that when supply improves, demand is anticipated to be met in the second half of 2021.

Dicker Data chief operating officer and executive director, Vladimir Mitnovetski added:

The company sees its greatest opportunity in the next 12 months in supporting reseller partners who are building and delivering return to work solutions and strategies that are compliant with evolving Government guidelines. The commercialisation of edge technologies will accelerate as home offices become office sub-branches that require connectivity, security and device management solutions.

Dicker Data share price snapshot

Year to date, the Dicker Data share price has stormed 50% higher. When factoring in the past 12 months, the company's shares have more than doubled in value.

Based on the current Dicker Data share price, the company has a market capitalisation of around $2.7 billion.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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