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DCC operating profit for quarter three “strongly ahead” of prior year

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Donal Murphy, chief executive of DCC

Donal Murphy, chief executive of DCC

Donal Murphy, chief executive of DCC

DCC, an international sales, marketing and support services group, says its operating profit for the final three months of 2020 was “strongly ahead of the prior year.”

Despite the disruption and uncertainty caused by the Covid-19 pandemic, DCC recorded “strong” organic operating profit growth, while also benefiting from acquisitions completed in the previous year, according to a trading update.

DCC’s liquified petroleum gas (LPG) division recorded “good” operating profit growth in what is the third quarter of the company’s financial year.

This division of the business continued to experience reduced volume demand from commercial and industrial customers, however, cylinder and domestic demand remained robust.

This arm of the business also benefited from the impact of the acquisitions of NES Group in the United States, completed in September last year, and Budget Energy in Ireland, acquired in April 2020.

DCC Retail & Oil delivered good organic operating profit growth during the three-month period, according to the group.

While volumes in the third quarter continued to be impacted by lower commercial, industrial and transport demand due to Covid-19 restrictions, the impact was less severe than that experienced earlier in the financial year, DCC said.

In its technology division, the company has reported “strong” organic operating profit growth in the third quarter of the financial year.

The healthcare arm of DCC “delivered an excellent performance, with operating profit well ahead of the prior year.”

The company’s financial year runs to the end of March. DCC said expects that the year ending March 31 will be another one of “development and good growth in operating profit, ahead of current market consensus expectations.”

Since May of last year DCC has committed approximately £230m (€250.5m) to new acquisitions across Europe and North America.

The Donal Murphy-headed company expects to announce its results for the year ending March 31 in May.

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