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DCC grows profits 11.1pc and promises higher dividend

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Donal Murphy, DCC chief executive

Donal Murphy, DCC chief executive

Donal Murphy, DCC chief executive

Sales and marketing group DCC saw operating profit grow 11.1pc to £589.2m (€698m) in the year to end-March, ahead of market expectations and allowing for a larger dividend.

The group has proposed a 11.2pc increase in the final dividend to 175.78 pence sterling per share, DCC’s 28th consecutive year of dividend growth.

Adjusted earnings per share were up 11.2pc to 430.1 pence, the group said.

Revenues were up 32.2pc on 2021 to £17.732bn, with a return on capital of 16.5pc.

DCC delivered a growth in profits despite an almost doubling of average product cost, thanks to acquisitions in the US and Ireland and a growth in volumes as pandemic restrictions lifted.

Around £600m was committed to acquisitions in the period, including US appliance distributor Almo, DCC’s largest buyout to date.

Organic volumes were up by 6.8pc due to a strong recovery in commercial and industrial demand, DCC said.

Operating profits grew fastest in DCC’s healthcare division (up 22.9pc on 2021), while the retail and oil and technology divisions also saw double-digit growth compared to 2021.

Free cash flow of £382.6m reflected the anticipated reversal of prior year working capital timing benefits, DCC said.

In its full-year results for 2022, the Dublin-based group also announced the creation of DCC Energy, a new divisional and management structure to help its customers reach their 2050 net zero targets.

The firm expects another year of profit growth in 2023, it said.

“I am very pleased that DCC has delivered an excellent performance in a challenging macro environment, with profit growth across each of our divisions, again demonstrating the resilience of our business,” said chief executive Donal Murphy.

“Our colleagues around the Group continued to deliver for our healthcare, technology and energy customers and other stakeholders, ensuring the supply of DCC’s essential products and services.

“Although the world is experiencing a particularly volatile period and supply chain disruption is elevated, DCC is well positioned to grow and develop with momentum.

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“We are committed to leading our customers in their energy transition by providing innovative and cleaner energy solutions that will help them to achieve their net zero goals.”


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