Profits at DCC fell last year as mild weather and higher oil prices affected its energy subsidiary.

Although revenue rose to €10.7 billion, an increase of almost 25 per cent on a constant currency basis, operating profit fell by 18.3 per cent to €185 million, with the difficult economic conditions in UK also contributed to an impact on trading at DCC Energy.

Operating profit in the division was down by 38 per cent, as the UK – DCC Energy’s largest market – recorded its mildest winter on record. The figures suffered all the more when compared to the previous winter, which saw extremely cold conditions. This led to weaker demand for heating oil products, and resulted in “considerable” excess capacity for the company.

It was strong organic growth in DCC Sercom that helped lift the group’s turnover in the year to March 31st 2012, along with acquisitions made during the period. Revenue at DCC Sercom rose by 16.5 per cent compared with a year earlier, while operating profit was up by 20 per cent.

The group said it was expecting to return to strong growth in operating profit in the year to March 31st 2013.

“The year was also one of significant development activity, within DCC Energy and across the wider group, with total capital deployed on acquisitions and net capital expenditure of €235 million,” said chief executive Tommy Breen. “With the benefit of this activity and the prospect of a more normal winter, DCC looks forward to a resumption of strong growth in the year ahead.”