Operating profit increases at DCC, as it sees growth across all divisions

Stock market-listed investment firm DCC saw its adjusted profit increase in the 12 months to 31 March, despite the challenges of the Covid-19 pandemic.

CC is an international sales, marketing and support services group. It is made up of four main divisions; LPG, Retail & Oil, Healthcare, and Technology.

The company reported adjusted operating profit of £530.2m (€616m), a 7.3pc increase year-on-year.

All divisions of DCC recorded growth in operating profit, despite the “challenging” trading environment, according to annual results from the company.

Revenue at DCC fell 9pc year-on-year to £13.4bn (€15.5bn).

Over the past 12 months DCC spent around £375m on acquisitions.

Each division of the company was acquisitive during the year, including the significant expansion of DCC LPG’s business in the US with the acquisition of UPG and the initial entry by DCC Healthcare into the German and Swiss primary care markets through the acquisition of Wörner.

In DCC’s Healthcare arm,  operating profit was up 45.9pc on a continuing basis, driven by helping healthcare systems cope with Covid-19, supplying PPE and Covid equipment to GPs and hospitals and the ongoing shift to primary care facilities.

The company said there was also “significant demand” for nutritional supplements and premium health and beauty products like Estee Lauder.

Its Technology division saw operating profit up 11pc, driven by strong demand for consumer tech as people sought to stay entertained and the supply of equipment to support the switch to home working.

Its LPG business performed “resiliently,” with operating profit up 1.3pc. This division saw lower commercial and industrial demand, partially offset by strong demand domestically.

DCC reported operating profit growth of 3.3pc in its Retail and Oil division.

The company generated free cash flow of £687.8m during the year.

Donal Murphy, chief executive of DCC, said: “I am delighted to report that DCC has continued its excellent track record of growth and development, despite the unprecedented challenges during the year.”

“A strong trading performance, excellent cash generation, very strong returns on capital employed and continued development activity are hallmarks of DCC’s resilient business model,” he added.

Looking forward, DCC said it expects that the year ending 31 March 2022 will be another year of profit growth.

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