Dicker Data (DDR) investor relations material

Executive summary

• Gross revenue for H1 FY25 reached AUD 1.84 billion, up 15.7% year-over-year, driven by accelerated PC refresh and AI-related deals.

• EBITDA increased 9.4% to AUD 75.4 million, with operating profit before tax up 13.3% to AUD 57.6 million.

• Net profit after tax rose 11.1% to AUD 39.4 million, and earnings per share grew 10.9% to 21.8 cents.

• Recurring software revenue neared AUD 0.5 billion for the half, up 23%, with software sales up 20.9%.

• Operational highlights include selection as distribution partner for Australia’s first sovereign AI factory and new partnerships with CrowdStrike, VAST, and others.

Financial highlights

• Gross profit margin declined to 9.1% from 9.8% due to a shift toward lower-margin enterprise customers.

• Total expenses as a percentage of gross revenue fell to 6.1% from 6.9% year-over-year, reflecting strong cost management.

• Net debt decreased by AUD 6.3 million to AUD 299.5 million, with improved net cash from operating activities.

• Fully franked dividends of AUD 0.22 per share paid in H1 FY25, with ongoing commitment to interim dividends and DRP.

• Australia segment gross revenue grew 18% to AUD 1.55 billion, with over AUD 30 million from large-scale AI deployments; New Zealand revenue up 5.2% to AUD 292 million.

Outlook and guidance

• FY25 gross revenue guidance is AUD 3.7–3.8 billion (10–13% growth), with operating profit before tax of AUD 120–124 million and PBT margin of 3.2–3.4%.

• H2 is expected to be stronger, with growth driven by enterprise, mid-market, and AI deals; no SMB recovery assumed.

• Revenue growth is expected to moderate in H2, but profitability should strengthen as the business rebalances toward SMB and mid-market.

• Double-digit device sales growth expected to continue, led by Windows 10 refresh and enterprise demand.

• Further AI ecosystem partnerships and contributions from the AI factory project are anticipated.