The Dicker Data Ltd (ASX: DDR) share price rose by 6.9% on Thursday after the technology business released its full-year FY24 report.
Let's check out the numbers.
Dicker Data share price lifts on gross profit rise
- Gross revenue of $3.4 billion, up 2.9% on the prior corresponding period (pcp)
- Gross profit of $324 million, up 2.7% pcp
- Full-year gross margin maintained at 9.6%
- Earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $150 million, steady on pcp
- Net profit after tax (NPAT) of $79 million, down 4.2% pcp
- Cash as at 31 December 2024 was $45.8 million, up from $11.6 million pcp
- Final dividend of 11 cents per share (cps)
Dicker Data said the lift in gross revenue was supported by an increase in subscription revenues and market share gains.
The company noted a particularly strong December quarter, with gross sales 9.9% higher than pcp.
Dicker Data said FY24 had been a "challenging financial year".
It said maintaining EBITDA at last year's level was a "positive outcome" following increased bad debt provisioning and write-offs during the year.
What else happened in FY24?
High inflation and interest rates in Australia and New Zealand adversely affected consumer sentiment and sales to small and medium-sized businesses.
In response, Dicker Data pivoted its focus on enterprise customers, who were less affected by the macroeconomic environment due to their scale.
The company said its top-performing technologies in FY24 were cybersecurity, data management, and those associated with Artificial Intelligence (AI) deployments.
Dicker Data said the anticipated 'PC Refresh' due to the impending end of support for Microsoft's Windows 10 in October also began to drive some demand in FY24.
This demand is expected to rise. The company noted that it was selling AI-enabled devices at triple the rate it had anticipated as part of the 'PC Refresh'.
Dicker Data noted that competitive pressures increased in FY24.
What did Dicker Data management say?
Chairman and CEO, David Dicker, said:
As I said last year, the last few years have been difficult.
We have been adversely affected by events completely out of our control. We may have been guilty of not adjusting as quickly as we should have.
However, in 2025 we are fully focused on returning to sold growth in both Sales and Profits. We will be making some aggressive changes to achieve these goals.
I want to assure all shareholders that I am firmly focused on achieving the targets we have set for this year.
What's next for Dicker Data?
Executive Director and Chief Financial Officer, Mary Stojcevski, said the management team had a "positive outlook for FY25" amid stabilising inflation and interest rate cuts.
She said:
Furthermore, the Company continues to be selected by its expanding list of vendors for incremental investment opportunities which are designed to accelerate our success and
offset some costs.
Dicker Data share price snapshot
The Dicker Data share price has fallen 25%, while the S&P/ASX 200 Index (ASX: XJO) has lifted 8% over the past 12 months.
