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Profit at DCC increases as it experiences growth across all divisions

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Donal Murphy, DCC

Donal Murphy, DCC

Donal Murphy, DCC

International sales, marketing and support services group DCC saw its profit increase in the 12 months to March 31, with all divisions delivering growth.

Adjusted operating profit increased by 7.3pc to £494.3m (€553m), despite Brexit uncertainty and the emergence of the Covid-19 pandemic.

Revenue, however, declined by 3pc to £14.7bn (€16.4bn), according to its annual results.

During the year DCC committed around £170m to new acquisitions, including DCC Healthcare, expanding its presence in the US nutritional market with the acquisitions of Ion Labs and Amerilab and continued bolt-on purchasing activity across all divisions.

Since the outbreak of the Covid-19 pandemic, the company said each of its divisions has experienced “changed demand patterns.”

This has resulted in “significant demand increases in some areas, with significant declines in others,” it said.

“The strong trading performance of the group in March benefited from increased demand for essential heating and healthcare products, with negative impacts most apparent later in the month in reduced demand for retail transport fuels and certain consumer technology products,” it said.

Meanwhile, DCC will continue to pay out a dividend, proposing a final dividend of 95.79 pence per share, a 2.6pc increase on the prior year.

This will see the total dividend for the year increase by 5pc to 145.27 pence per share.

Donal Murphy, chief executive of DCC, said: “A good trading performance, excellent cash generation, strong returns on capital employed and continued acquisition activity are all hallmarks of DCC's resilient business model.

DCC's diverse, resilient business model and financial strength ensures the group is in a very strong position to navigate through this period of uncertainty.”

Online Editors