Data#3 (DTL) H2 2024 earnings summary

Executive summary

• Achieved record gross sales of AUD 2.8 billion, up 7.6% year-over-year, with net profit before tax rising 16.6% to AUD 62.1 million and 67% recurring sales.

• Earnings per share grew 16.9% to 28.0 cents, and a full-year dividend of AUD 0.255 per share was declared, up 16.4% with a payout ratio of 91.1%.

• Maintained leading market position, strong supplier relationships, and long-term customer base, winning major awards from Microsoft and Cisco.

• Continued ESG progress, developing Net Zero Strategy and winning APAC sustainability recognition, including induction into the Queensland Business Leaders Hall of Fame.

• Leadership transition with new CEO and Chair as part of a planned process.

Financial highlights

• Gross profit increased 7.8% to AUD 270.1 million, with gross margin on gross sales stable at 9.8%.

• Services gross profit rose 8.6% to AUD 135.4 million with margins around 36%; product-based gross profit up 6.7% to AUD 134.4 million with margins at 5.7%.

• Interest income surged to AUD 9.7 million from AUD 3.5 million, benefiting from higher cash balances and rates.

• Internal cost ratio (staff and operating expenses as % of gross profit) was 80.6%, slightly up from 80.3% last year due to investments and inflation.

• Net cash inflow from operating activities was AUD 86.2 million, down from AUD 291 million, reflecting timing differences and prior year prepayments.

Outlook and guidance

• Expects continued growth in services, especially from AI-driven demand, multi-cloud, security, and managed services profitability.

• Multi-cloud security and annuity offerings to drive further growth; infrastructure solutions may face ongoing decision delays.

• No specific FY 2025 guidance provided; expects seasonal sales peak in May and June and aims for sustainable earnings growth.

• Pipeline remains healthy across commercial and government sectors, with no significant shift in project mix.