16 July 2021

DCC plc

Interim Management Statement

DCC Reports Very Strong Growth in First Quarter

DCC plc, the leading international sales, marketing and support services group, is issuing this Interim Management Statement in advance of the Company's AGM to be held in Dublin at 11.00 am today. 

First quarter ended 30 June 2021

DCC traded very well in the seasonally less significant first quarter of the year, building on the strong performance recorded for the year ended 31 March 2021. Operating profit growth was well ahead of the prior year and modestly ahead of expectations, driven by very strong organic profit growth in DCC Healthcare and DCC Technology.

DCC LPG delivered good operating profit growth in the first quarter. As anticipated, volumes recovered relative to the first quarter of the prior year due to increased demand from commercial and industrial customers, particularly in Britain.  

DCC Retail & Oil also recorded good operating profit growth. The gradual re-opening of economies led to volume growth with transport and commercial customers.

Operating profit in DCC Healthcare grew very strongly in the first quarter of the year. DCC Health & Beauty Solutions generated very strong organic profit growth in both the U.S. and in Europe. DCC Vital also delivered very strong organic profit growth as healthcare systems began to increase elective procedures. In addition, DCC Vital benefitted from the first-time contribution from Wörner in Germany and Switzerland, which has performed well since it was acquired in April 2021.

DCC Technology also generated very strong operating profit growth, driven by an excellent performance in North America, where the business continues to develop its market position. The business recorded strong organic growth in Pro-AV and Pro Audio business technology products, particularly in North America, as economies reopened and continued to experience good demand for consumer products.

Outlook

DCC expects that the year ending 31 March 2022 will be another year of strong operating profit growth and continued development activity.

Sustainability

DCC released its first standalone sustainability report on 13 July 2021. The report highlights how the Group creates sustainable value for its stakeholders. The report outlines key metrics that DCC will use to track progress against its sustainability objectives. It also showcases many examples of the solutions DCC is providing to customers to enable the decarbonisation of their energy requirements.  

Development activity

The Group continues to be active from a development perspective. Since the Group's prior year results announcement on 18 May 2021, DCC has completed a number of new bolt-on acquisitions, including DCC Healthcare's first primary care bolt-on acquisition in Continental Europe following its initial market entry through the acquisition of Wörner in April 2021.

DCC has also completed the previously announced acquisitions of Primagaz by DCC LPG, Jones Oil by DCC Retail & Oil and Azenn by DCC Technology since the Group's prior year results announcement.

Chairman succession

As previously announced, John Moloney will retire as Chairman and from the Board following today's AGM. Mark Breuer will succeed John as Chairman at the conclusion of the AGM.

Date for Interim Results

DCC expects to announce its interim results for the six months ending 30 September 2021 on Tuesday 9 November 2021.

For reference:                                                                                                 

Donal Murphy, Chief Executive

Kevin Lucey, Chief Financial Officer

Rossa White, Head of Group Investor Relations

Telephone: +353 1 2799400                                                        

Email: investorrelations@dcc.ie                                

Web: www.dcc.ie

Powerscourt (Media)

Lisa Kavanagh / Eavan Gannon

Telephone: +44 20 7250 1446

Email: DCC@powerscourt-group.com

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 20 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 approximately 13,700 people, DCC's four divisions are:

·    DCC LPG - a leading LPG sales and marketing business with operations in Europe, the US 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 fuels 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 route-to-market and supply chain partner for global technology brands and customers.

DCC plc is listed on the London Stock Exchange and is a constituent of the FTSE 100. In its financial year ended 31 March 2021, DCC generated revenue of £13.4 billion and operating profit of £530.2 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 27 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.