- Dicker Data (DDR) recorded its largest-ever revenue month in March, as shelter-in-place measures across Australia increase demand for at-home IT equipment and software
- Consequently, the company generated $463.9 million in revenue in 2020’s first quarter, a 19.9 per cent increase on 2019’s corresponding period
- Despite the strong performance, Dicker Data has not provided any 2020 guidance, citing ongoing market volatility
- The company also announced an interim fully franked dividend of 7.5 cents per share
- Dicker Data’s share price has seen a 3.21 per cent uptake this morning, with stock trading for $7.08 per share
Information technology distributor, Dicker Data (DDR) has reported a strong first quarter due to COVID-19 lockdowns increasing demand for its products.
When shelter-in-place measures across Australia came into effect late in the quarter, the company saw a surge in demand for at-home IT software and equipment. Consequently, the company recorded its largest-ever revenue month in March.
In the three months leading up to March 31, the company generated $463.9 million in revenue, a 19.9 per cent increase on 2019’s corresponding period. This resulted in a profit before tax of $18.4 million, which is up 36.3 per cent on the previous year.
Alongside the increase in demand, the company noted supply chain constraints from its product sources. However, with factories now reopening across Australia Dicker Data is confident it can meet its order backlog.
Due to the strong quarterly performance, the company has stated that, thus far, the COVID-19 pandemic has not negatively impacted its operations. Despite this, the company has not provided any guidance for the second half of its financial year, citing ongoing market volatility.
Following the results, Dicker Data has announced an interim fully franked dividend of 7.5 cents per share. This will result in a total full-year distribution of 35.5 cents per share, a 31.5 per cent increase on 2019’s total dividend payments.
However, if the pandemic negatively affects its operations in the second half of the year, the company stated this could affect the planned distribution.
The company also noted that its non-essential office staff continue to operate from home, but its warehouse has remained fully operational during the pandemic.
Dicker Data’s share price has seen a 3.21 per cent uptake this morning, with stock trading for $7.08 per share.