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Dicker Data (ASX:DDR) soars after announcing profit increase

ASX 200
ASX:DDR      MCAP $1.632B
26 October 2021 17:40 (AEST)
Dicker Data (ASX:DDR) - Chairman and CEO, David Dicker (left)

Source: Dicker Data / Facebook

Dicker Data (DDR) shares have soared after the ASX-200 lister posted a 26 per cent increase in profit before tax over the last nine months.

The technology hardware, software, and cloud distributor ended September with $76.6 million in profit, a notable increase on the previous years’ result of $60.8 million.

DDR’s revenue also jumped 16.1 per cent to over $1.7 billion during the same nine-month period, despite a backlog of orders Dicker needs to fulfill.

The company explains it’s been continually impacted by global supply constraints and it expects the global chip shortage to continue throughout 2022.

Despite the constraints, DDR said it has managed to increase its stock allocation in recent months to provide a buffer zone against further shortages.

The tech stock began the September quarter with the acquisition of Exceed Group, which added $65.2 million in revenue and $1.9 million in net profit to DDR’s bottom line in just two months.

Looking ahead, the business said it was expecting its cybersecurity products to remain in demand throughout the rest of 2021 while all of its backlogged orders should be fulfilled this quarter.

Shares in Dicker Data have jumped up over 10 per cent in today’s trading session, adding close to $2 to the company’s share price.

At the close of market on Tuesday, DDR was trading up 14.1 per cent to $15.06 per share.

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