Interim Management Statement

RNS Number : 7132O

DCC PLC

11 February 2016

 

11 February 2016

DCC plc

Interim Management Statement

DCC Reports Very Strong Growth in Third Quarter Operating Profit

DCC plc, the international sales, marketing, distribution and business support services group, is issuing this Interim Management Statement for the third quarter ended 31 December 2015.

Third quarter ended 31 December 2015

Group operating profit in the third quarter ended 31 December 2015 was very significantly ahead of the prior year. There was excellent growth in operating profit in each of DCC Energy, DCC Healthcare and DCC Environmental with more difficult trading conditions in DCC Technology.

Operating profit in DCC Energy was very significantly ahead of the prior year, despite the milder winter weather conditions. The two large acquisitions completed earlier in the financial year, Esso Retail France and Butagaz, performed in line with, or modestly ahead of, expectations. Whilst overall heating-related volumes were held back by the mild temperatures, a good margin and cost performance was achieved.  

Operating profit in DCC Technology was behind the prior year, as the business continued to be impacted by reduced demand for tablet, smartphone and gaming products.

DCC Healthcare traded well ahead of the prior year, benefiting from a very strong performance from DCC Health & Beauty Solutions and a continued improvement in the sales mix and good cost control in DCC Vital.

Operating profit in DCC Environmental was strongly ahead of the prior year.

Year to 31 March 2016

DCC continues to expect that both operating profit and adjusted earnings per share will be very significantly ahead of the prior year and in line with current market consensus.

Development Activity

The year to 31 March 2016 has been a milestone year for development in DCC with the completion earlier in the financial year of DCC's two largest acquisitions to date, Butagaz and Esso Retail France. The cash outflow on acquisitions completed in the nine months to 31 December 2015 (which includes the previously committed acquisitions of Butagaz and Esso Retail France), inclusive of a net movement in deferred and contingent acquisition consideration, was £385 million. Total committed acquisition expenditure in the nine months to 31 December 2015 was £39 million.

DCC remains ambitious to continue the growth and development of its business in existing and new geographies and retains a strong, well-funded and liquid balance sheet.

Final Results

DCC expects to announce its results for the year to 31 March 2016 on 17 May 2016.

For reference:

Tommy Breen, Chief Executive                        

Fergal O'Dwyer, Chief Financial Officer

Kevin Lucey, Head of Group Finance & Investor Relations                  

Telephone: [phone]                                       

Email: [e-mail]                        

Web: www.dcc.ie

About DCC plc

DCC plc is an international sales, marketing, distribution and business support services group headquartered in Dublin with operations in Britain, Continental Europe and Ireland. DCC has four divisions - DCC Energy, DCC Technology, DCC Healthcare and DCC Environmental. In its last financial year ended 31 March 2015, DCC generated revenue of £10.6 billion and operating profit from continuing activities of £222 million and currently employs approximately 11,000 people in 14 countries. DCC's shares are listed on the London Stock Exchange and are included in the FTSE 100 Index.  

Forward-looking statements

This announcement contains some forward-looking statements that represent DCC's expectations for its business, based on current expectations about future events, which by their nature involve risk and uncertainty.  DCC believes that its expectations and assumptions with respect to these forward-looking statements are reasonable, however because they involve risk and uncertainty as to future circumstances, which are in many cases beyond DCC's control, actual results or performance may differ materially from those expressed in or implied by such forward-looking statements.

 

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