Dell New Zealand profit rises despite slight revenue dip

Dell New Zealand increased profit in the year ended 31 January 2026 despite reporting a slight decline in revenue, supported by lower operating expenses, foreign exchange gains and growth in its non-current asset base.

Net profit for the year rose to NZD $2.34 million, up from NZD $2.20 million a year earlier. Profit before income tax increased to NZD $3.04 million from NZD $2.89 million, while income tax expense edged higher to NZD $701,758 from NZD $685,782.

Revenue

Revenue slipped modestly to NZD $233.68 million from NZD $234.33 million in the previous financial year.

Cost of sales increased to NZD $211.59 million, compared with NZD $208.80 million a year earlier. As a result, gross profit declined to NZD $22.09 million from NZD $25.53 million.

The lower gross profit reflected higher direct costs despite broadly stable sales.

Costs

Operating expenses were lower across several categories during the year.

General and administrative expenses fell to NZD $8.26 million, down from NZD $9.30 million. Selling expenses also declined to NZD $11.20 million from NZD $13.11 million.

The company recorded a net foreign exchange gain of NZD $116,042, compared with a foreign exchange loss of NZD $393,908 in the previous year.

Finance income was broadly unchanged at NZD $252,555, while finance costs fell to zero from NZD $95,801. Other income increased to NZD $48,620, compared with NZD $2,613 a year earlier.

The combination of lower operating costs and improved non-operating items helped offset the decline in gross profit.

Asset growth

Total assets increased to NZD $149.41 million at 31 January 2026 from NZD $131.16 million a year earlier.

The increase was driven by non-current assets, which rose to NZD $88.83 million from NZD $50.57 million. Property, plant and equipment more than doubled to NZD $51.88 million, compared with NZD $24.46 million in the previous year. Other non-current assets also increased to NZD $35.85 million from NZD $24.62 million.

Current assets, however, declined to NZD $60.58 million from NZD $80.59 million.

Receivables from related parties fell sharply to NZD $14.92 million from NZD $32.48 million, while trade and other receivables decreased to NZD $18.72 million from NZD $20.72 million.

Inventories increased to NZD $8.46 million from NZD $7.60 million.

Liabilities

Total liabilities rose to NZD $124.20 million, compared with NZD $108.53 million at the end of the previous financial year.

Current liabilities increased to NZD $89.45 million from NZD $71.71 million. Payables to related parties climbed to NZD $49.48 million, up from NZD $27.82 million. Trade and other payables increased to NZD $9.97 million from NZD $9.50 million.

Contract liabilities declined to NZD $27.47 million from NZD $31.30 million, while non-current contract liabilities also eased to NZD $32.16 million from NZD $34.31 million.

Equity

Net assets increased to NZD $25.21 million, compared with NZD $22.63 million a year earlier.

Retained earnings rose to NZD $17.03 million from NZD $14.70 million, reflecting the year's profit. The share option reserve also increased to NZD $1.87 million from NZD $1.63 million, while the common control reserve remained broadly stable at NZD $6.31 million.

Total equity finished the year at NZD $25.21 million, up from NZD $22.63 million.

The financial statements show Dell New Zealand ended the year with stronger profitability and a larger asset base, despite softer revenue and lower gross margins. Increased investment in property, plant and equipment was a notable balance sheet change, while tighter operating costs and improved foreign exchange movements supported earnings growth.