TIDMDCC
RNS Number : 1135E
DCC PLC
07 February 2018
7 February 2018
DCC plc
Interim Management Statement
Trading in line with expectations and DCC Healthcare acquisition
in US
DCC plc, the leading international sales, marketing and support
services group, is issuing this Interim Management Statement for
the third quarter ended 31 December 2017.
Third quarter ended 31 December 2017
Group operating profit for the third quarter ended 31 December
2017 was in line with expectations and ahead of the prior year.
Operating profit in DCC LPG was in line with expectations and
the prior year, despite the headwind of an increasing cost of
product. The mild weather conditions experienced early in the
quarter impacted heating-related volumes modestly, although this
was largely offset by good cost control. As previously announced,
the French business launched its consumer natural gas and
electricity initiative during the quarter and continues to invest
in the development of its offering.
DCC Retail & Oil recorded good growth in operating profit,
driven by strong organic profit growth in Denmark and Fuel Card.
The business in Britain performed in line with expectations.
DCC Healthcare recorded strong growth in operating profit. DCC
Vital delivered good organic profit growth, particularly in medical
devices, and also benefited from the acquisition of Medisource
completed during the prior year. DCC Health & Beauty Solutions
again delivered strong growth in nutritional products.
Operating profit in DCC Technology was ahead of the prior year,
benefiting from acquisitions and a good organic performance from
the UK and Ireland, DCC Technology's largest business, where strong
growth was achieved in the key product areas of audio visual, smart
home and enterprise. The French consumer products business remains
challenging and a number of operational changes are underway to
improve performance. The remaining Continental European businesses
continued to perform well and traded in line with expectations.
Year to 31 March 2018
Notwithstanding the mild start to the fourth quarter,
particularly in France, DCC expects that both operating profit and
adjusted earnings per share will be well ahead of the prior year
and in line with current market consensus.
Development activity
The year to date has been very active from a development
perspective. Reflecting the announced acquisition activity, the
Group's cash spend on acquisitions in the current financial year
will be approximately GBP670 million.
Today's announcement by DCC Healthcare of the acquisition of
Elite One Source Nutritional Services, Inc ("Elite") is an exciting
step in the expansion of DCC Health & Beauty Solutions. The
acquisition is the business' first step into the growing US market,
the world's leading healthcare and dietary supplements market.
Based in Missoula, Montana, Elite is a provider of contract
manufacturing and related services to leading specialist brands in
the US consumer healthcare market. The business, led by an
experienced management team, employs 180 people and operates from
well-invested facilities which comply with FDA cGMP and Health
Canada standards and are certified by leading third party
regulatory bodies. The consideration, based on an enterprise value
of $50 million (GBP35 million), was paid in cash on completion.
Elite is expected to generate a return on capital employed of
approximately 15% within the first two years of ownership.
The completion processes for the previously announced
acquisitions of Retail West, TEGA and Countrywide are progressing
to plan and all transactions are expected to complete by the end of
the current financial year.
DCC remains ambitious to continue the growth and development of
its business in existing and new geographies and retains a strong,
well-funded and liquid balance sheet.
Final results
DCC expects to announce its results for the year to 31 March
2018 on 15 May 2018.
For reference:
Donal Murphy, Chief Executive
Fergal O'Dwyer, Chief Financial Officer
Kevin Lucey, Head of Capital Markets
Telephone: +353 1 2799400
Email: investorrelations@dcc.ie
Web: www.dcc.ie
Powerscourt (Media)
Lisa Kavanagh / Victoria Palmer-Moore
Telephone: +44 20 7250 1446
Email: DCC@powerscourtgroup.com
About DCC plc
DCC is a leading international sales, marketing and support
services group with a clear focus on performance and growth. It
operates through four divisions: LPG, Retail & Oil, Healthcare
and Technology.
DCC is an ambitious and entrepreneurial business operating in 15
countries, supplying products and services used by millions of
people every day throughout Europe. Building strong routes to
market, driving for results, focusing on cash conversion and
generating superior sustainable returns on capital employed enable
the Group to reinvest in its business, creating value for its
stakeholders.
Headquartered in Dublin, employing approximately 10,000 people,
DCC's four divisions are:
-- DCC LPG - a leading LPG sales and marketing business with
operations in Europe and Asia and a developing business in the
retailing of natural gas and electricity; -- DCC Retail & Oil -
a leader in the sales, marketing and retailing of transport fuels
and commercial fuels, heating oils and related products and
services in Europe; -- DCC Healthcare - a leading healthcare
business, providing products and services to healthcare providers
and health and beauty brand owners; and -- DCC Technology - a
leading European sales, marketing and services partner for global
technology brands.
DCC plc is listed on the London Stock Exchange and is a
constituent of the FTSE 100. In its financial year ended 31 March
2017, DCC generated revenue of GBP12.3 billion and operating profit
of GBP345 million.
DCC has an excellent record, delivering compound annual growth
of 14% in operating profit and generating an average return on
capital employed of approximately 19% over 23 years as a public
company.
Forward-looking statements
This announcement contains some forward-looking statements that
represent DCC's expectations for its business, based on current
expectations about future events, which by their nature involve
risk and uncertainty. DCC believes that its expectations and
assumptions with respect to these forward-looking statements are
reasonable, however because they involve risk and uncertainty as to
future circumstances, which are in many cases beyond DCC's control,
actual results or performance may differ materially from those
expressed in or implied by such forward-looking statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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