‘Significant growth trajectory’: Dicker Data (ASX:DDR) share price rises following strong full year results

The Dicker Data Ltd (ASX: DDR) share price is moving higher today.

During midday trade, the company delivered its FY21 results to the market.

At the time of writing, the IT distributor’s shares are up 2.76% to $14.17 each, after earlier reaching an intraday high of $14.27.

Dicker Data share price edges higher on double-digit growth across all key metrics

The Dicker Data share price is advancing following the company’s full-year result for the 12 months ending 31 December 2021. Here are some of the key highlights:

• Total revenue of $2,484.5 million, up 24.2% year on year (FY20 $2,000.1 million)
• Earnings before interest, tax, depreciation and amortisation (EBITDA) of $118.7 million, up 29.9% (FY20 $91.4 million)
• Net profit after tax (NPAT) of $73.6 million, up 28.6% (FY20 $57.2 million)
• Final dividend of 15 cents per share, bringing total dividends paid for the year to 42 cents.

What happened in FY21 for Dicker Data?

Investors are buying up Dicker Data shares as the company registered a solid scorecard for the FY21 period.

Dicker Data maintained its upwards revenue trajectory, despite logistics constraints, COVID-19, and the global chip shortage.

At a national level, Australia grew revenues by $300.3 million, up 16.3%, and New Zealand by $184.1 million, up 128.7%.

Throughout the year, the company added nine new vendors which accounted for incremental revenue of $54.7 million.

Dicker Data continued its diversification strategy with its top five vendors contributing 49% of revenue in FY21. By comparison, in FY12, the company’s top five vendors accounted for 90% of Dicker Data’s earnings base.

What did management say?

Dicker Data chair and CEO David Dicker commented on the solid achievement, saying:

Our FY21 result represents over 43 years of experience and a significant growth trajectory.

Since being listed on the ASX on 24 January 2011 at an initial market cap of $25 million, today shares have recently traded around $14 with a market cap of just under $2.5 billion. This solidifies the company’s status as a true Australian success story and a fast growing and high-returning stock.

The commitment of our people and the focus of the company over the last twelve months has demonstrated the flexibility of our business. We continue to excel in a challenging environment and deliver a service to our vendors and reseller partner community that they value and is unmatched in the local market.

What’s instore for the Dicker Data share price in FY22?

Looking ahead, Dicker Data advised that FY22 is expected to be a bumper year as the digital transformation era accelerates.

The company noted that demand for its technology and value-added services remains robust. This is expected to be underpinned by its software portfolio which represents the highest growth opportunity for Dicker Data in FY22.

Context Research is predicting more than 25% year-on-year growth in software for all distributors globally, driven predominantly by hybrid cloud adoption.

In addition, the work from anywhere trend, professional audiovisual, and its infrastructure business are forecast to deliver another strong year.

Supply constraints are expected to remain until mid-2022, however, this is unlikely to have an adverse impact. Dicker Data highlighted its resilience and experience in navigating and performing in a disruptive environment.

The post ‘Significant growth trajectory’: Dicker Data (ASX:DDR) share price rises following strong full year results appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras owns Dicker Data Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Dicker Data Limited. The Motley Fool Australia owns and has recommended Dicker Data Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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