The Dicker Data Ltd (ASX: DDR) share price is the worst-performing out of the entire S&P/ASX 300 Index (ASX: XKO) this afternoon.
Shareholders are abandoning shares in the IT distribution company after it published its unaudited FY22 full-year results. At the time of writing, the wholesale distributor is trading 10.1% lower at $9.37. The Dicker Data share price is now 40% below its 52-week high.
Unfortunately, the numbers fell below the expectations of investors and management.
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Dicker Data share price comes unstuck on flat earnings
- Revenue up 25% year on year to $3,104.4 million in FY22
- Earnings before interest, tax, depreciation, and amortisation (EBITDA) up 9.3% to $129.8 million
- Net profit after tax (NPAT) marginally lower by 0.3% to $73.4 million
- Final fully franked dividend of 2.5 cents per share declared, down from 15 cents per share
- Total FY22 dividends of 41.5 cents per share, down slightly from 42 cents per share
Following a year of stupendous growth, Dicker Data experienced some more challenging conditions in FY22. As a result, the company's net earnings finished below what was originally expected.
According to the release, the main driver of the weaker bottom line came down to increased costs — mainly from higher salary and finance costs.
Furthermore, an unsteady supply chain meant ASX-listed Dicker Data held onto more inventory during the period. This meant the company needed to draw down on its debt while at higher interest rates. Additionally, the integration of Exeed and Hills also consumed additional capital.
What happened to the company's dividend?
The 2.5 cents per share fully franked final dividend looks remarkably different from the 15 cents the company paid out a year ago. This could be leaving shareholders wondering what happened to the rest of their payment.
Management has stuck to its policy of paying 100% of NPAT out to shareholders. In the release, it is said that the final dividend is lower than the previous one due to the beefed-up interim dividends paid throughout FY22.
The ex-dividend date for this year's final dividend is 13 February 2023. For those eligible, shareholders will receive their dividend on 1 March 2023.
What's next for Dicker Data on the ASX?
These unaudited FY22 results give investors a fairly good look at how the company performed during the financial year. However, the next important event for Dicker Data is on 27 February 2023. That's when the full audited figures will be released in conjunction with an investor conference at 11:00am AEDT.
The Dicker Data share price is down 31% compared to a year ago. In contrast, the ASX 300 index is up 4.2%.
