Australian Distributor Dicker Data Thrives During COVID-19
Australia’s largest locally owned and operated technology hardware, software and cloud distributor Dicker Data has thrived during the COVID-19 crisis, as elevated demand for remote working solutions continues to drive business.
In Q1 2020 Dicker Data’s total revenue increased by 19.9% year-on-year (y-o-y) to $463.9 million, and in April it rose by a further 37.7% y-o-y. Net profit rose even more significantly in Q1, up 36.3% y-o-y, at $18.4 million.
Earlier this month the company successfully completed its $15 million Share Purchase Plan, after raising it by $10 million above its original target, in response to the strong demand shown by eligible shareholders. This followed the $50 million institutional placement that was completed in May.
Dicker Data has stated that these raised funds will be used to establish the firm’s new distribution centre, fund further investment in the company’s DDFS product, and provide balance sheet flexibility.
While the work-from-home (WFH) trend has driven Dicker Data’s revenues over the past few months, the company’s CEO David Dicker does not believe that widespread WFH practices will necessarily be around over the long term. “I don’t think there will be anywhere near as much long-term change as people are predicting,” Dicker told The Australian.
Dicker Data’s share price has more than doubled compared to early 2019. Yesterday, it closed at $7.11.