SAP New Zealand profit more than doubles on cloud growth
Mon, 1st Jun 2026 (Today)
SAP New Zealand more than doubled its annual profit in 2025 as strong growth in cloud revenue helped drive higher sales and operating earnings.
Profit after income tax rose to NZD $17.4 million for the year ended 31 December 2025, up from NZD $7.7 million a year earlier. Profit before tax increased to NZD $22.6 million from NZD $15.6 million, while operating profit climbed to NZD $20.1 million from NZD $12.1 million.
The company generated total revenue of NZD $251.9 million during the year, compared with NZD $217.5 million in 2024, representing growth of almost 16%.
Cloud growth
Cloud services remained the primary driver of revenue growth.
Cloud revenue increased to NZD $141.5 million in 2025 from NZD $110.3 million a year earlier. The increase of more than NZD $31 million made the cloud the largest contributor to the company's revenue base.
Revenue from software support edged lower to NZD $48.1 million from NZD $49.1 million. Software licence revenue fell sharply to NZD $2.6 million from NZD $5.7 million. Combined software licences and support revenue declined to NZD $50.7 million from NZD $54.8 million.
Services revenue also increased during the year, rising to NZD $59.7 million from NZD $52.3 million.
The results indicate continued customer demand for cloud-based offerings while traditional software licensing contributed a smaller share of overall revenue.
Profit gains
The company's stronger revenue performance translated into higher earnings despite increased operating costs in several areas.
Licence and agents' commissions rose to NZD $93.9 million from NZD $83.6 million. Services expenses increased to NZD $79.8 million from NZD $61.1 million.
Employee benefits expenses declined to NZD $45.5 million from NZD $48.8 million, helping support profitability. Other expenses increased modestly to NZD $12.9 million.
Finance income fell to NZD $2.6 million from NZD $3.7 million, while finance costs remained relatively low at NZD $138,152.
Income tax expense decreased to NZD $5.2 million from NZD $7.9 million.
Balance sheet
SAP New Zealand ended the year with total assets of NZD $141.4 million, up from NZD $125.6 million in 2024. Total equity increased to NZD $33.1 million from NZD $22.7 million. Retained earnings rose to NZD $29.0 million from NZD $18.6 million.
Cash and cash equivalents more than doubled to NZD $25.1 million from NZD $11.9 million. Other financial assets increased to NZD $55.4 million from NZD $40.5 million.
Trade and other receivables fell to NZD $28.0 million from NZD $41.4 million, while contract liabilities increased to NZD $46.7 million from NZD $33.8 million. Higher contract liabilities typically reflect revenue contracted but not yet recognised.
Shareholder returns
The company strengthened its equity position despite making a dividend payment to shareholders.
Retained earnings increased by more than NZD $10 million during the year, while total equity rose by nearly 46%. The company paid dividends of NZD $7 million in 2025, compared with NZD $13 million in the previous year.
The financial statements also show current assets of NZD $116.3 million and current liabilities of NZD $106.1 million at year-end, resulting in positive working capital.
The results underscore the growing importance of cloud services within SAP New Zealand's operations, with cloud revenue accounting for more than half of total revenue during the year.