Profits on the rise at DCC

Business, Finance | Tue 10 Nov | Author – Business & Finance
Tommy Breen, DCC
Tommy Breen, chief executive, DCC

International sales, marketing, distribution and business support company, DCC, has announced a 26.1% growth in Group operating profit, driven in particular by the performances of DCC Energy and DCC Healthcare in its most recent interim report.

Adjusted earnings at the Group were up 18.5% to 70.3 pence per share and interim dividend increased by 15% to 33.04 pence per share.

The period also saw the completion of the acquisition of Butagaz and Esso Retail France and the Group’s net cash position at September 30th was £153m.

The Group now expects that both operating profit and adjusted earnings per share for the year ending 31 March 2016 will be very significantly ahead of the prior year and modestly ahead of current market consensus expectations.

Tommy Breen, chief executive, said: “I am pleased to report that operating profit of £88.4 million was 26.1% ahead of the prior year in the seasonally less significant first half. This very strong Group performance was achieved through excellent performances from the Energy, Healthcare and Environmental divisions, notwithstanding a more difficult background for the Technology division.

Operating profit in DCC Energy, the Group’s largest division, was 65.6% ahead of the prior year. Approximately half of this growth was organic and the balance was from first time contributions from Esso Retail France, DLG and Butagaz, all of which traded at, or ahead of, expectations.

However, operating profit in DCC Technology was back 43.6%, despite growth in the Irish, Continental European and Supply Chain businesses

Operating profit in DCC Healthcare was 16.1% ahead of the prior year and benefitted from an improved sales mix and good cost control, while DCC Environmental recorded excellent organic profit growth, with operating profit increasing to £8.5 million, 20.0% ahead of the prior year.