With Exeed on board, Dicker Data sees increased revenue in New Zealand

Mary Stojcevski (Dicker Data)

Credit: Dicker Data

Dicker Data’s annual revenue in New Zealand for the year to December 31, 2021 jumped A$184.1 million ($197.7 million) year-on-year, or 128.7% , with the addition of the recent acquisition, Exeed, representing additional revenue of A$183.1 million. ($196.6 million).

The Australian-headquartered retailer revealed in July last year that it would acquire local retail player Exeed for A$68 million, propelling Dicker Data into what it believes it is today. the second largest technology distributor in New Zealand.

Additionally, the transaction brought a significant level of operational experience and expertise in retail distribution, a segment in which Dicker Data has not traditionally sold.

The Australian Exeed business was fully integrated into Dicker Data as of December 31, 2021 and the integration of the New Zealand business is expected to be completed in the first half of this year.

On August 6, 2021, Dicker Data completed its acquisition of the Exeed business, which contributed five months of revenue to Dicker Data’s fiscal year.

The revenue contribution from the Exeed business was A$144.9 million ($155.5 million) in New Zealand and A$38.2 million ($41 million) in Australia.

Group-wide, Dicker Data’s total revenue from sales of goods and services, excluding other income, was A$2.48 billion (2.66 billion billion), well above the previous year’s total of A$1.99 billion, an increase of 24%.

The group’s statutory pre-tax net profit increased to A$105.1 million ($112.8 million), an increase of 28.4%.

Dicker Data’s chief financial officer and chief executive, Mary Stojcevski, told shareholders she expects to see further improvements from the company’s acquisition of Exeed.

“The company ended FY21 in a strong financial position,” Stojcevski said. “Our acquisition of the Exeed Group through A/NZ will allow the company to benefit from cost savings from the size of the combined entity, and we expect to realize these gains in this area, integrating neo -Zealand being completed in the first half of 2022.

“In addition, our acquisition of Hills’ security and information technology division represents an opportunity to further diversify the company’s vendor and reseller partner focus,” she added, referring to the the company’s more recent decision to buy out Hills’ Australian distribution division.

Indeed, Dicker Data expects to launch its first concerted attempt to capitalize on the physical security market in FY22, with the acquisition of Hills’ security and IT division a key part of the strategy.

Looking ahead, Dicker Data noted that software was the highest growth opportunity for the company in FY22, noting that research predicted more than 25% year-on-year growth. the other software for all distributors in the world, mainly thanks to the adoption of the hybrid cloud.

“Our software portfolio continues to strengthen and we believe it is now the second, if not the largest, software distribution company by revenue in the A/NZ region,” said the company in a press release.

“Fueled by the growth of cloud, security, collaboration and productivity, software continues to play a key role in driving the company’s annual recurring revenue (ARR) growth, with more customers than ever before. opting for the operational expenditure (OPEX) supply rather than the traditional capital expenditure (CAPEX) model.

Additionally, the company revealed that some of the biggest operational gains it has made over the past 12 months have come from its digital transformation, led by investments in software development to streamline processes and increase efficiency. overall.

Overall software recurring revenue increased 19.7% to A$520 million ($558.1 million).

And while supply constraints are expected to continue at least until mid-2022, Dicker Data said this is not a major concern.

“We have demonstrated a high level of resilience over the past two years and are good at navigating and performing well in this disruptive environment, while maximizing available opportunities,” the company said.

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Tags New ZealandDicker DataeXeedMary Stojcevski

Sallie R. Loera