Interim Management Statement

RNS Number : 0414P

DCC PLC

05 February 2019

 

5 February 2019

DCC plc

Interim Management Statement

Trading in line with expectations

DCC plc, the leading international sales, marketing and support services group, is issuing this Interim Management Statement for the third quarter ended 31 December 2018.

Third quarter ended 31 December 2018

Group operating profit for the third quarter ended 31 December 2018 was significantly ahead of the prior year and in line with expectations, notwithstanding the milder winter weather conditions.

DCC LPG recorded strong operating profit growth. The business benefited from the first-time contribution from the prior year acquisitions of Retail West, TEGA and Shell Hong Kong & Macau, which continued to perform in line with expectations. Organically, the business performed well, despite the mild winter weather conditions experienced in the quarter, which impacted heating related volumes in Europe.

DCC Retail & Oil delivered strong organic operating profit growth, driven by good performances from the businesses in Britain and Denmark, despite the milder weather, and a robust performance in France where the business was impacted by the regular nationwide protests.

Operating profit in DCC Healthcare was well ahead of the prior year. DCC Vital generated strong organic profit growth and continued to strengthen its market position in GP supplies and medical devices in Britain. DCC Health & Beauty Solutions again delivered good organic growth in both nutrition and beauty and benefited from the first-time contribution from Elite One Source, which was acquired in the prior year.  

DCC Technology recorded strong operating profit growth, driven by the first-time contribution from acquisitions and a good organic performance in the UK and Ireland. Jam and Stampede, DCC Technology's recent North American acquisitions, have been integrated into the Group and are performing well.

Year ending 31 March 2019

Notwithstanding the milder winter weather conditions, DCC expects that operating profit will be significantly ahead of the prior year and will be in line with current market consensus expectations.

Development activity

The Group's market leading positions, combined with the recent significant development activity and its strong and liquid balance sheet, provide DCC with the platforms, opportunities and capabilities to build the Group into a global leader in its chosen sectors.

Final results

DCC expects to announce its results for the year ending 31 March 2019 on 14 May 2019.

For reference:                                                                                                                                 

Donal Murphy, Chief Executive                                

Fergal O'Dwyer, Chief Financial Officer

Kevin Lucey, Head of Capital Markets                   

Telephone: [phone]                                                        

Email: [e-mail]                                              

Web: www.dcc.ie

Powerscourt (Media)

Lisa Kavanagh / Victoria Palmer-Moore

Telephone: [phone]

Email: [e-mail]

About DCC plc

DCC is a leading international sales, marketing and support services group with a clear focus on performance and growth. It operates through four divisions: LPG, Retail & Oil, Healthcare and Technology.

DCC is an ambitious and entrepreneurial business operating in 17 countries, supplying products and services used by millions of people every day. Building strong routes to market, driving for results, focusing on cash conversion and generating superior sustainable returns on capital employed enable the Group to reinvest in its business, creating value for its stakeholders.

Headquartered in Dublin, employing over 12,000 people, DCC's four divisions are:

       ·     DCC LPG - a leading LPG sales and marketing business with operations in Europe, the USA and Asia and a  developing business in the retailing of natural gas and electricity;

       ·     DCC Retail & Oil - a leader in the sales, marketing and retailing of transport and commercial fuels, heating oils and related products and services in Europe;

       ·     DCC Healthcare - a leading healthcare business, providing products and services to healthcare providers and health and beauty brand owners; and

       ·     DCC Technology - a leading sales, marketing and value-added services partner for global technology brands.

DCC plc is listed on the London Stock Exchange and is a constituent of the FTSE 100. In its financial year ended 31 March 2018, DCC generated revenue of £14.3 billion and operating profit of £383.4 million. 

DCC has an excellent record, delivering compound annual growth of 14% in operating profit and generating an average return on capital employed of approximately 19% over 24 years as a public company.

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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