DCC's first-quarter profits rise as expected

13th Jul 2023 08:02

(Sharecast News) - Energy-focussed sales, marketing and support services group DCC said in an update on Thursday that during its seasonally less significant first quarter, it achieved group operating profit in line with expectations, surpassing last year's results by a modest margin.

The FTSE 100 company, which was holding its annual general meeting, said its DCC Energy division experienced robust growth in the three months ended 30 June, primarily driven by the outstanding performance of its energy solutions business.

However, as expected, both DCC Technology and DCC Healthcare faced challenging market conditions, resulting in operating profit declines compared to the prior year.

The decline in DCC Healthcare's operating profit was primarily influenced by customer de-stocking in DCC Health & Beauty Solutions.

Nonetheless, DCC Vital saw considerable growth, which the board said helped to offset the overall impact.

Despite the operational challenges faced in certain segments, DCC said it was still active in pursuing potential acquisitions, adding that it was maintaining a promising pipeline of development opportunities.

"Notwithstanding the uncertain economic environment, DCC continues to expect that the year ending 31 March 2024 will be another year of operating profit growth and continued development activity," the board said in its statement.

DCC also announced that its chief executive Donal Murphy made a full return to work during the first half of June, after stepping back on 9 May to address a medical condition.

The company said it would announce its interim results for the six months to 30 September on 14 November.

Reporting by Josh White for Sharecast.com.