Portfolio

DCC profit rises as acquisitions offset effects of mild weather

By Sean Farrell

Date: Tuesday 14 May 2019

DCC profit rises as acquisitions offset effects of mild weather

(Sharecast News) - DCC's annual profit rose as acquisitions helped the sales and support services group overcome mild weather that affected its heating divisions.
Pre-tax profit for the year to the end of March rose 3.3% to £326.7m as revenue from continuing operations increased 16% to £15.2bn. The FTSE 100 company's adjusted operating profit from continuing operations rose 20.1% to £460.5m.

Liquefied petroleum gas, DCC's biggest business, increased operating profit by 20.5% to £201.8m, supported by acquisitions in Germany, Hong Kong and Macau but like-for-like volumes fell as warm weather across Europe reduced demand. Mild weather also contributed to declining volume at the retail and oil division where operating profit rose 17.6% to £133.7m comprising organic growth and gains from acquisitions.

Acquisitions also helped increase profit at DCC's technology and healthcare businesses. Technology operating profit rose 35.1% to £64.7m and healthcare profit was 11.1% higher at £60.3m.

Chief Executive Donal Murphy said: "I am very pleased to report that the year ended 31 March 2019 has been another year of significant progress for DCC. An excellent trading performance, very strong cash generation and continued acquisition activity across the group exemplifies the DCC business model.

"I am particularly pleased that each division recorded very strong growth in operating profit and traded in line with expectations, given the mild weather conditions experienced during the year. We expect that the year to 31 March 2020 will be another year of profit growth and development for the group."

The final dividend increased 13.7% to 93.37p giving an annual payout of 138.35p a share - a 12.5% increase.



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