Dicker Data NZ profit rises despite modest revenue growth

Dicker Data NZ increased profit in 2025 despite only modest revenue growth, as lower operating costs, reduced finance expenses and stronger operating cash flow offset continued pressure on sales growth.

The technology distributor reported total revenue of NZD $434.6 million for the year ended 31 December 2025, up from NZD $427.6 million in 2024. Sales revenue rose to NZD $434.1 million from NZD $425.8 million, while interest income and other revenue declined during the year.

Profit before income tax increased to NZD $11.9 million, compared with NZD $8.6 million a year earlier. Profit after tax rose 55% to NZD $8.5 million, from NZD $5.5 million in 2024.

Revenue growth

Revenue growth remained relatively subdued, increasing by around 1.6% over the previous year.

Sales continued to account for almost all of the company's income. Other revenue fell sharply, with interest received declining from NZD $676,020 to NZD $377,364, and other revenue dropping from NZD $1.04 million to NZD $77,815.

Despite the slower top-line growth, the company delivered improved earnings through tighter cost management.

Cost control

Cost of goods sold declined to NZD $379.2 million, compared with NZD $373.9 million in 2024, remaining the company's largest expense.

Employee benefit expenses fell to NZD $23.7 million, down from NZD $24.5 million. Depreciation and amortisation also decreased to NZD $4.9 million, while finance costs declined to NZD $3.9 million from NZD $5.0 million.

Other operating expenses remained broadly stable at NZD $10.8 million. Total expenses increased modestly to NZD $422.6 million, reflecting the higher sales volume, although the increase was slower than the growth in gross profit.

The combination of lower employment costs and reduced financing expenses contributed to stronger profitability.

Balance sheet

The company's financial position strengthened during the year. Total assets stood at NZD $228.4 million, compared with NZD $232.8 million at the end of 2024.

Current assets remained largely unchanged at NZD $167.2 million. Cash and cash equivalents edged higher to NZD $40.2 million, while trade receivables declined to NZD $70.0 million from NZD $73.1 million. Inventories also fell to NZD $48.6 million, down from NZD $53.1 million, indicating lower stock holdings than the previous year.

Total liabilities declined to NZD $144.8 million, from NZD $157.7 million. Current borrowings were reduced from NZD $68.0 million to NZD $63.0 million. Lease liabilities also declined across both current and non-current balances.

Net assets increased to NZD $83.6 million, compared with NZD $75.1 million at the end of the previous year.

Retained earnings rose to NZD $37.1 million, from NZD $28.6 million, reflecting the year's higher profit.

Issued capital remained unchanged at NZD $46.5 million.

Cash generation

Operating cash generation improved significantly during the year. Net cash from operating activities more than doubled to NZD $16.5 million, up from NZD $7.6 million in 2024.

Customer receipts increased to NZD $745.6 million, while payments to suppliers, agency vendors and employees also rose to NZD $722.1 million. Income tax payments increased to NZD $4.3 million, while interest paid fell to NZD $3.1 million.

Investment activity remained limited. Net cash used in investing activities totalled NZD $137,129, primarily relating to property and equipment purchases.

Financing activities recorded a net cash outflow of NZD $16.2 million. The company repaid NZD $5.0 million in borrowings during the year, following additional debt drawn in 2024. It also recorded net repayments to related parties of NZD $7.9 million, along with lease and interest payments.

Despite the financing outflows, year-end cash remained stable at NZD $40.2 million, slightly higher than the NZD $40.0 million reported a year earlier.

The results indicate that Dicker Data NZ entered 2026 with higher profitability, stronger operating cash flow, lower borrowings, and an improved equity position, despite only modest revenue growth in 2025.