Irish group DCC delivers strong growth in first half of year

Revenue, operating profit rise as company records growth across its business

Diversified Irish energy and services group DCC delivered strong growth in the first half of 2021, the company said, with operating profit rising 11 per cent and revenue up almost 27 per cent year on year.

The company said adjusted earnings per share were also up, gaining almost 14 per cent compared with the first six months of the previous year.

Revenue was £7.52 billion (€8.79 billion), up from the £5.93 billion the company recorded in 2020, and marginally ahead of the £7.3 billion it recorded in 2019. Operating profit was £195.8 million, with adjusted earnings per share at 134.2p.

There was growth across all DCC’s divisions, despite global volatility in commodity pricing, supply chains and inflation. Its healthcare division saw operating profit rise 26 per cent to £50.2 million, while its technology division rose 6.5 per cent to £25.5 million. Its DCC LPG and Retail & Oil units grew operating profit by 6.2 per cent and 7.4 per cent respectively.

The group said its interim dividend increased 7.5 per cent to 55.85p per share.

The group said its net debt was £54.1 million at the end of September.

‘Good growth’

"I am pleased to report a strong performance in the seasonally less significant first half, which builds on the growth recorded during the first half of the prior year," chief executive Donal Murphy said. "Each of our four divisions has delivered good growth, underlining the resilience of our business model and our ability to adapt to the very volatile macro environment.

“Sustainability is core to how we do business, and we continue to make good progress across each of our four sustainability pillars, including within energy transition. During the period we have developed a number of new partnerships with energy suppliers, bringing innovative and lower-carbon solutions to our customers. DCC is well positioned to lead our customers through their energy transition.”

DCC said it expected the year ending March 31st, 2022, to be another year of strong operating profit growth and continued development activity, and in line with current market consensus expectations.

“With the strength of our market positions and an active acquisition pipeline, DCC has the capability and financial strength to continue the growth and development of the group across the energy, healthcare and technology sectors,” Mr Murphy said.

DCC also announced the appointment of a new non-executive director to its board. Former UDG Healthcare chief financial officer Alan Ralph has been appointed as a non-executive director and member of the audit committee.