DCC Q3 operating profits hit targets across its global divisions

Business | Wed 7 Feb | Author – Business & Finance
Shaun Murphy, Managing Partner, KPMG; Donal Murphy, CEO, DCC; and Ian Hyland, Business & Finance at the Business & Finance Awards 2017 where DCC won Company of the Year.

The international sales, marketing and support services group issued its Interim Management Statement for Q3, ended 31 December 2017.

The statement shows that DCC‘s Q3 operating profit targets hit expectations and were ahead of the year previous. An increasing cost of product didn’t scupper the forecast figures.

DCC’s retail and oil division recorded good growth in operating profit. This was predominantly driven by strong organic profit growth in Denmark and Fuel Cards. The British business performed in line with expectations.

DCC Healthcare gained strong growth, too. DCC Vital delivered good organic profit growth in medical devices and the acquisition of Medisource during 2017. DCC Health & Beauty gained strongly in nutritional products.

DCC Technology‘s operating profit grew due to good performances in the UK and Ireland. French consumer products remains a challenge and is undergoing operational changes to improve performance. The rest of the European business continued to perform well.

In terms of the year-to-date performance, ending 31 March 2018, DCC expects operating profit to remain ahead of the year prior, even with a slow start to Q4, particularly in France. The groups’ cash spend on acquisitions in the current year will be around the £670 million mark.

Today DCC announced the acquisition of Elite One Source Nutritional Services, Inc (“Elite”) for the DCC Health & Beauty Solutions branch. This is the firm’s first step into the growing US market.

The completion processes for Retail West, TEGA and Countrywide acquisitions are on schedule and transactions are expected to be finished by the end of the financial year.

DCC expects to announce its results for the year to 31 March 2018 on 15 May 2018.