Profit growth at DCC in first quarter ‘well ahead’ of last year

Operating profit growth at DCC, an Irish diversified energy and services group, was "well ahead" of the previous year in its first quarter and "modestly ahead of expectations", the company has said in a trading update.

The group said the performance for the first quarter ended June 30th, 2021, was driven by “very strong organic profit growth” in its healthcare and technology divisions.

The group’s liquefied petroleum gas (LPG) division 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,” it said.

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DCC’s retail and oil division also recorded “good operating profit growth”. The gradual reopening of economies led to volume growth with transport and commercial customers, it said.

Operating profit in DCC Healthcare grew “very strongly” in the first quarter. DCC Health and Beauty Solutions also generated “very strong” organic profit growth in both the US and Europe.

In addition, DCC Vital delivered “very strong organic profit growth” as healthcare systems began to increase elective procedures.

The division 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.

In terms of outlook, DCC expects that the year ending March 31st, 2022, will be another year of “strong operating profit growth and continued development activity”.

Since its results announcement on May 18th, 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.

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

Appointments

As previously announced, John Moloney will retire as chairman and from the board following Friday’s agm. Mark Breuer will succeed him at the conclusion of the meeting.

DCC also announced the appointment of Laura Angelini as a non-executive director and member of the governance and sustainability committee with effect from Friday. The company said Ms Angelini is a “highly experienced business leader with extensive knowledge of the healthcare sector”. She has more than 25 years of experience in medical devices across multiple therapies and business models, including hospital products, consumer medtech and home therapies.

Following her appointment, DCC will be fully compliant with the recommendations of the Hampton-Alexander and Parker reviews on board diversity.

Mr Breuer will also become chairman of the governance and sustainability committee and will resign as a member of the audit committee.

“I warmly welcome Laura Angelini to the board,” said Mr Breuer. “Her leadership experience, healthcare expertise and knowledge of the North American markets will enhance the board’s knowledge in key areas.”