What Does Dicker Data Ltd (ASX:DDR) Report in Its Half-Year Appendix 4D?

Sonal Goyal

19 October 2026 05:00 PM AEDT

What Does Dicker Data Ltd (ASX:DDR) Report in Its Half-Year Appendix 4D?

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Key Highlights

Dicker Data reported half-year revenue of $1,406.8 million, up 13.5%, and net profit after tax of $60.7 million, up 54.1%.
Gross sales were $2,096.3 million, up 14.0%, and gross profit margin was 14.6%.
Inventory rose to $419.4 million and net debt was $291.3 million at 30 June 2026.

Dicker Data Ltd (ASX:DDR) shares were priced at $15.275 during the trading session on 19 October 2026, down 1.39%. Dicker Data is a value-added distributor of IT hardware, software, cloud, access control, surveillance and emerging technology solutions in Australia and New Zealand. On 28 August 2026, the company lodged its Appendix 4D and interim financial report for the half year ended 30 June 2026, covering results, dividends, the balance sheet and an outlook for the second half. The price data relates only to the 19 October 2026 session and is separate from the release date.

Half-year earnings

Statutory revenue was $1,406.8 million, up 13.5% (prior period: $1,239.1 million). The company explained that statutory revenue records software and virtual services sold as agent on an agency fee basis, so it also reports gross sales, a non-IFRS measure, which were $2,096.3 million, up 14.0%.

Gross profit excluding other income was $205.6 million, up 23.0%, and the gross profit margin was 14.6%, up from 13.5%. EBITDA was $103.5 million, up 37.3%. Net profit before tax was $86.4 million, up 52.7%, and net profit after tax was $60.7 million, up 54.1%. Basic earnings per share were 33.45 cents, up 53.5%.

Regional performance and dividends

Gross sales in Australia were $1,826.4 million, up 18.1%. New Zealand gross sales were $269.8 million, down 7.6%, which the company attributed to exchange rate movements. Headcount rose to 995 from 927.

Dividends paid during the half totalled 23.0 cents per share, or $41.6 million, fully franked, comprising a final FY25 dividend of 11.5 cents paid on 19 March 2026 and an interim FY26 dividend of 11.5 cents paid on 2 June 2026. Of the total, $36.3 million was paid in cash and $5.3 million participated in the dividend reinvestment plan.

Balance sheet and cash flow

Total assets were $1,445.8 million at 30 June 2026, compared with $1,149.2 million at December 2025. Inventory increased by $107.0 million to $419.4 million as the company invested to mitigate supply chain uncertainty, and trade receivables rose to $670.3 million, which the company linked to a high-volume sales month in June 2026.

Total borrowings were $348.6 million and net debt was $291.3 million. Cash was $57.2 million. Operating cash flow was $42.7 million, down from $49.0 million. The company also revalued its land and buildings to market value, which added $107.3 million to that asset class and a tax-effected gain of $75.6 million in other comprehensive income.

Operating costs, net tangible assets and accounting changes

Operating costs fell as a percentage of revenue to 8.8% from 9.1%, while employment costs were 6.3% of revenue compared with 6.2%. Net tangible assets per ordinary share were $1.50, compared with $0.90 in the prior period. Total liabilities rose by $196.9 million to $1,089.0 million, driven by higher trade payables of $646.2 million.

During the period the company changed its accounting policy to carry land and buildings at market valuation instead of cost. The report states that this lifted property, plant and equipment to $199.8 million from $92.0 million. The financial statements were subject to review by Ernst & Young.

Sector backdrop

IT distributors sit between technology vendors and resellers, and their results depend on hardware refresh cycles, software and cybersecurity demand, vendor relationships and working capital management. The report refers to data centre modernisation, AI-related infrastructure investment and component supply constraints as factors in current conditions. Distribution businesses generally operate on lower margins than software developers, so gross profit margin and inventory levels are common reference points.

Risks shareholders should weigh

The press release and the wider operating environment point to several considerations that shareholders may wish to weigh:

The company expects AI-related revenue to accelerate in the second half, and describes that revenue as typically lower margin.
Higher prices are expected to begin to materialise in the second half, which the company says could reduce unit demand.
Component and supply chain constraints are expected to raise inventory replenishment costs.
Inventory and trade receivables increased significantly during the half, which increased working capital to $444.5 million.
Operating cash flow was lower than in the prior period, and net debt remained at $291.3 million.

What's next

The company's outlook for the second half of FY26 expects demand for data centre refresh, software and AI-related projects to support growth, while growth in end-point solutions is expected to moderate. The report states that management expects favourable market conditions to continue through the remainder of FY26, with pricing and supply chain effects flowing through in the second half.

FAQs

Q: What was Dicker Data's half-year net profit after tax?

A:$60.7 million, up 54.1% on the prior corresponding period.

Q: What is the difference between revenue and gross sales in the report?

A:Statutory revenue records software and virtual services as agent on a fee basis, while gross sales is a non-IFRS measure showing gross proceeds from sales.

Q: How much did Dicker Data pay in dividends during the half?

A:23.0 cents per share, or $41.6 million, fully franked.

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