Vladimir Mitnovetski (Dicker Data)
Dicker Data has absorbed redundancy costs of $513,000 during the first quarter of 2023 as part of “operational refinements”.
The Sydney-based distributor claimed it spent the quarter capitalising on investments in automation, process improvements and the synergies enabled by shared core services such as logistics, finance, marketing, IT and operations.
The quarter saw Dicker Data post 14 per cent rise in revenue to $772 million despite continued supply issues, and net profit before tax of $25 million.
According to a notice on the Australian Securities Exchange, backorders across the company across Australia and New Zealand are currently sitting around $235 million with work currently underway to reduce the amount of overall 'aged stock'.
Segments that are still impacted by supply chain challenges include data centre infrastructure and networking.
However, the situation is improving, Dicker Data said, with the supply chain for approximately 75 per cent of the company’s vendors now being able to keep up with market demand.
Dicker Data said it expects supply constraints to ease further by the third quarter.
The revenue between Australia and New Zealand was $623.9 million and $148.4 million respectively. Its significant growth year-on-year was attributed in part to the acquisition of Hills’ security business which was not part of 2022’s results.
“We are entering Q2 with a positive outlook. A number of the new vendors we have onboarded in the last six to twelve months have begun delivering on our expectations and the pipeline for our existing vendor portfolio continues to grow,” said Vlad Mitnovetski, Dicker Data’s chief operating officer.
“There are a number of new opportunities that we are working with our partner community to capitalise on, and we have a strong vision and plan on what we need to do to set the Company up for success in the remainder of FY23. Furthermore, the consolidation of the technology distribution market in Australia and New Zealand continues to create unique opportunities that we are well-placed to maximise.”
Looking ahead, Dicker Data cited cyber security as an area of growth due to the rise in breaches. The distributor said it was well-positioned to assist its vast partner network to scope, design and deploy the technologies needed to keep businesses secure.
