DCC reports rise in operating profit in final three months of 2023
DCC chief executive Donal Murphy alongside CFO Kevin Lucey
Irish distribution giant DCC has reported an increase in profits in the final three months of 2023.
The group said that operating profit for the third quarter of its financial year was modestly ahead of the corresponding period in 2022 despite the “volatile macro environment”.
DCC’s energy division delivered growth in the period as a result of demand for the group’s energy solutions and despite mild weather conditions in many regions.
Operating profit was down in both DCC Healthcare and DCC Technology but the rate of decline slowed compared with the first half of the group’s financial year, the group reported.
DCC said there was improved market conditions in the health and beauty solutions market but this remained below historic growth levels.
DCC Technology reported “difficult trading conditions” in the consumer tech sector, a slowdown it had noticed earlier in 2023.
Read more
It has also committed around £355m to acquisitions since the end of its previous financial year last March, including £45m since November 2023.
DCC Energy has recently agreed to acquire the energy management division of eEnergy Group in the UK.
The distribution group now expects operating profit for the year ending March 31 to rise in line with expectations.
“Q3 is seasonally important and DCC has delivered modest year-on-year growth in operating profit. This is positive given the volatile macro environment,” Davy analyst Colin Grant wrote.
“The company expects FY2024 to be another year of operating profit growth, in line with expectations. This would mark the 23rd year of growth in Ebita in the last 25 years,” he added.
Goodbody analyst Gerry Hennigan wrote that the group once again demonstrated “resilience in its traditional base energy business”.
DCC recorded a profit of £655.7m in the year to March 31, 2023.
This reflected an increase of 11.3pc from the prior year and was the group’s highest profit to date.
The growth was driven by operating profit increases in DCC’s energy division, as well as the impact of acquisitions completed in the current and previous year.
It completed 19 acquisitions in its previous financial year.
Group revenue rose to £22.2bn, up 25.2pc year-on-year.
DCC employs 16,000 people in 22 countries across four continents.
