Dicker Data's FY23 Financial Performance

Dicker Data Limited (ASX: $DDR) has reported its financial results for the year ended 31 December 2023. The company's statutory revenue for the period was $2,267.7m, up by $54.5m or 2.5% from the previous year. The underlying gross sales for the same period increased by 5.4% to $3,269.7m, attributed to a full 12 months' contribution from the Hills acquisition and organic growth from existing and new vendors.

Executive Commentary on Financial Performance

The company has revised its accounting policy for the recognition of sales of virtual services and software, recognizing revenue as the agency fee made up of standard commission and other incentives driven by volume and other metrics. The increase in underlying sales growth is partly attributed to the full 12 months' contribution from the Hills acquisition and the CSP acquisition in NZ, which contributed an incremental $70.5m in sales. Additionally, the company experienced growth across all product segments, with hardware and virtual services gross sales at $2,357.1m, software sales at $900.3m, and services revenue increasing to $12.3m.

Summary of FY23 Performance and Outlook

Dicker Data's FY23 financial performance reflects a 5.4% increase in underlying gross sales, driven by contributions from recent acquisitions and organic growth. The company's revised revenue recognition policy for virtual services and software has impacted the presentation of statutory revenue. The gross profit for the reporting period improved by 11.2% to $315.5m, with gross profit margins at 13.9%. Operating expenses increased by 11.8%, primarily attributed to an increase in salary-related expenses. The net profit after tax increased by 12.5% to $82.1m, and the company's total assets as at 31 December 2023 were $927.0m. Dicker Data's improved working capital efficiency and strategic acquisitions position the company for continued growth in the coming year.