Data#3 (DTL) H2 2024 earnings summary

Executive summary

• Achieved record gross sales of AUD 2.8 billion for FY24, up 7.6% year-over-year, with 67% recurring sales and net profit before tax rising 16.6% to AUD 62.1 million.

• Earnings per share grew 16.9% to 28.0 cents, and a full-year dividend of AUD 0.255 per share was declared, up 16.4% with a payout ratio of 91.1%.

• Maintained a strong balance sheet with no borrowings, leading market position, and robust supplier and customer relationships.

• Recognized with multiple industry awards, including Microsoft and Cisco global partner accolades, and for workplace and sustainability achievements.

• Continued ESG progress, developing Net Zero Strategy and winning APAC sustainability recognition.

Financial highlights

• Gross profit increased 7.8% to AUD 270.1 million, with gross margin on gross sales stable at 9.8%.

• Services gross profit rose 8.6% to AUD 135.4 million with margins around 36%; product-based gross profit up 6.7% to AUD 134.4 million with margins at 5.7%.

• Interest income surged to AUD 9.7 million, benefiting from higher cash balances and rates.

• Internal cost ratio (staff and operating expenses as % of gross profit) was 80.6%, slightly up from last year due to investments and inflation.

• Net cash inflow from operating activities was AUD 86.2 million, down from AUD 291 million, reflecting timing differences and prior year prepayments.

Outlook and guidance

• Expects continued growth in services, especially from AI-driven demand, multi-cloud, security, and managed services profitability.

• Infrastructure growth may be constrained by ongoing customer decision delays, but public sector investments and annuity offerings support future growth.

• No specific FY25 guidance provided; sales peak expected in May and June, with sustainable earnings growth as a goal.

• Pipeline remains healthy across commercial and government sectors, with no significant shift in project mix.