Sales, marketing and support services group DCC says it is “well positioned” to continue its growth and development into the future, despite the uncertain environment created by Covid-19.
The Irish group, which is active in 20 countries across Europe, North America and Asia, distributes fuel, electronics and health and beauty products.
Since DCC's last update on May 19, the company says its trading performance has “continued to improve,” in what is its seasonally less significant first quarter.
This is despite Covid-19 having a "significant impact" on business operations.
Donal Murphy, DCC chief executive, said the company’s improving performance through the quarter has meant it has recommenced “selective organic development capital expenditure to ensure we are in a position to capture any opportunity for market share gains during this period.”
While trading was “resilient,” the performance is behind last year due to the lockdown restrictions in place during April and May, according to a statement from the group ahead of its AGM.
In an update that did not contain detailed financials, DCC said its operating profit in DCC LPG was behind the prior year due to weakness in commercial and industrial volumes, particularly in Britain and Ireland.
Meanwhile, DCC Retail & Oil performed well in the quarter, driven by good performances from both the British and Danish businesses.
The performances reflected “strong demand” from agricultural customers and “very strong demand” in the domestic sector, where customers sought to secure supply during the lockdown period.
This, along with a gradual recovery in the volume of transport fuel through the second half of the quarter and a “good” cost management delivered operating profit modestly ahead of the prior year, despite the overall fall in volumes.
Meanwhile, operating profit in DCC Technology was behind the prior year, although trading improved steadily through the quarter, the company said.
Elsewhere, DCC Healthcare performed “strongly” during the quarter, with operating profit well ahead of the prior year.
In particular, DCC Vital reported “very strong demand” for Covid-19 related products, which offset the impact of “substantially lower” hospital procedures and consultations.