Dicker Data (DDR) has released a 3Q15 trading update and has upgraded its earning guidance for FY15
Source: FIIG Securities, Company report
Key points
- As the chart above illustrates, profit before tax continues to track above forecast leading the company to increase its FY15 guidance from $30.9m to $31.5m
- DDR continues to benefit from synergies and increased scale from the Express Data acquisition which has improved efficiency and driven this result
- Gross margin has increased to 9.8% (prior year 8.6%) and the profit before tax margin improved to 2.8% (prior year 1.4%)
- Given DDR is a high volume low margin business, efficiency is extremely important and the company continues to be stronger than major competitors in the region on these metrics which is a key strength of the business
- Year to date revenue was $802.9m and the group remains on track to meets its $1bn plus target for the full year
The DDR 3Q15 presentation can be viewed here.