Sales, marketing and support services group DCC reported an 11% increase in full-year operating profit to over £589 million.
DCC’s revenue for the year to the end of March rose 32% to £17.732 billion, from £13.412 billion the previous year, due to higher energy commodity prices.
As soaring energy prices boosted its performance, CDC’s healthcare division posted the highest percentage growth of the year.
DCC has proposed an 11.2% increase in the final dividend to 119.93 pence per share which, together with the interim dividend of 55.85 pence per share, gives a total dividend for the year of 175, 78 pence per share.
He said this represents a 10% increase on the previous year’s dividend of 159.80 pence per share and marks the company’s 28th consecutive year of dividend growth.
During the year the company reported continued momentum of acquisition activity with around £600m spent, including the purchase of Almo, DCC’s largest acquisition to date .
CDC also today announced an updated strategy for its energy business, including the creation of DCC Energy.
This will be a new divisional and management structure aligned with the company’s goal of supporting its customers in their transition to renewable and low-carbon energy.
The company has set its capital allocation priorities to accelerate DCC Energy’s transition capability and a 2050 or sooner net zero goal for carbon emissions.
He said he expects the year to the end of March 2023 to be another year of growth and earnings development, despite the current difficult macroeconomic environment.
Donal Murphy, chief executive of DCC, said the company performed strongly in a challenging macro environment, with earnings growth across each of its divisions, which he said again demonstrated the resilience of the business. ‘business.
“Our colleagues across the group continued to serve our healthcare, technology and energy customers and other stakeholders, ensuring the delivery of essential CDC products and services,” Murphy said.
“In addition, this morning we are announcing an updated strategy for our energy business. We are committed to supporting our customers in their energy transition by providing them
innovative and cleaner energy solutions that will help them achieve their net zero goals,” he said.
“We have the ambition to make CDC a global leader in our chosen industries. We have the platforms, opportunities and capabilities to do so. Although the world is going through a particularly volatile time and disruptions supply chain are high, CDC is well positioned to grow and grow with momentum,” he added.
Breaking down its divisions, the company said DCC’s LPG business performed well during the year, with operating profit rising 2.8% to £237.7 million.
DCC said the earnings growth was achieved despite the backdrop of very substantial increases and volatility in the wholesale cost of products, with the average cost of products nearly doubling over the year.
Volumes were up 15.8% on the back of the reopening of economies and acquisition activity in the United States and Ireland, he added.
The company noted that in Ireland and the UK, activity saw a strong recovery in trade volumes. It has also increased its market share through petroleum-to-LPG conversions that reduce customers’ carbon emissions by approximately 20%.
In December 2021, DCC acquired Naturgy’s electricity and gas marketing activities in Ireland. He said the deal adds “innovative energy transition expertise” in biomethane, direct renewable power purchase agreements and solar solutions. Since its acquisition, the company has performed in line with expectations.
The DCC Retail & Oil division enjoyed “excellent growth” during the year, with operating profit reaching £169.4m, an increase of 17%.
It sold 11.6 billion liters of product, an increase of 14% over the previous year and DCC said the “significant” increase in volumes was due to a strong recovery in trade volumes, retail and fuel cards, which had been affected by Covid-19. limitations.
Meanwhile, the DCC Healthcare business generated operating profit growth of 22.9%, approximately two-thirds of which was organic.
DCC said the very strong organic performance was driven by DCC Vital, which delivered excellent organic profit growth in Britain, Ireland and the DACH region.
DCC Health & Beauty Solutions performed well in a challenging operating environment and was boosted by the first contribution from Wörner, acquired in April 2021.
And DCC Technology also recorded very strong growth in its operating profit of 12.8%, boosted by the contribution of the acquisitions made during the year. CDC said the strong performance was achieved despite a challenging supply chain environment.