DCC reiterates FY guidance; 'good' growth in Q1 operating profit
Sales, marketing and support group DCC reiterated guidance for the full year on Friday as it reported “good growth” in first quarter group operating profit, driven by acquisitions completed in the prior year.
DCC said profits were "significantly" weighted towards the second half of its financial year.
"At what is still a very early stage in the financial year, the group reiterates its belief that the year ending 31 March 2020 will be another year of profit growth and development,” the company said in a trading statement.
DCC Technology recently completed the acquisitions of Comm-Tec in Germany and Amacom in the Netherlands, following receipt of customary regulatory approvals.
“Both Comm-Tec and Amacom will significantly enhance DCC Technology’s service offering in continental Europe and will strengthen its relationships with suppliers and customers in the region,” the company said.
DCC Retail & Oil also recently finalised the creation of a new branded aviation fuels marketing and distribution business in Denmark with Shell Aviation, which involved Shell Aviation purchasing an interest in DCC’s existing Danish aviation fuels business.
“DCC has grown substantially in recent years and now has significant operations across 18 countries, with market-leading positions in each of its liquefied petroleum gas, retail and oil, technology and healthcare divisions,” it said.
“DCC’s ambition and capacity for further development, together with the group’s leading market positions and increased geographic reach, provide substantial opportunity for the continued growth and development of the business.”
DCC Vital recently entered into an agreement to dispose of its UK generic pharma activities and related manufacturing facility in Ireland (Kent Pharma and Athlone Laboratories), subject to regulatory and other consents.
“The disposal will sharpen the strategic focus of DCC Vital, allowing it to concentrate on those areas where it has market leading positions and sustainable competitive advantage, in particular in the sales, marketing and distribution of medical products in Britain and Ireland,” the company said.
“DCC Vital will also continue to develop its pharma activities in Ireland which encompass a market leadership position in the procurement and sales of exempt medicinal products and agency distribution into the hospital and retail pharmacy segments.”