DCC sees FY 'significantly ahead' after strong Q3

Sales and support services group DCC said it expected full year operating profit to be “significantly ahead” of the prior year, in line with consensus after a solid third quarter and despite the milder winter and French “gilets jaune” protests.

In a trading statement, the Ireland-based group said its LPG division recorded strong operating profit growth as the business benefited from first-time contributions from the prior year acquisitions of Retail West, TEGA and Shell Hong Kong & Macau.

Organically, the business performed well DCC said, despite the mild winter weather conditions experienced in the quarter, which impacted heating related volumes in Europe.

In retail and oil profit growth was driven by good performances from 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 healthcare was well ahead of the prior year with DCC Vital strengthening its market position in GP supplies and medical devices in Britain.

Health and beauty solutions benefited from the first-time contribution from Elite One Source, which was acquired in the prior year, DCC said.

The firm's technology unit 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,” the company said.