DCC plc (LON:DCC), the leading international sales, marketing and support services group, is issued this Interim Management Statement for the third quarter ended 31 December 2018.
Third quarter ended 31 December 2018
Group operating profit for the third quarter ended 31 December 2018 was significantly ahead of the prior year and in line with expectations, notwithstanding the milder winter weather conditions.
DCC LPG recorded strong operating profit growth. The business benefited from the first-time contribution from the prior year acquisitions of Retail West, TEGA and Shell Hong Kong & Macau, which continued to perform in line with expectations. Organically, the business performed well, despite the mild winter weather conditions experienced in the quarter, which impacted heating related volumes in Europe.
DCC Retail & Oil delivered strong organic operating profit growth, driven by good performances from the businesses in Britain and Denmark, despite the milder weather, and a robust performance in France where the business was impacted by the regular nationwide protests.
Operating profit in DCC Healthcare was well ahead of the prior year. DCC Vital generated strong organic profit growth and continued to strengthen its market position in GP supplies and medical devices in Britain. DCC Health & Beauty Solutions again delivered good organic growth in both nutrition and beauty and benefited from the first-time contribution from Elite One Source, which was acquired in the prior year.
DCC Technology recorded strong operating profit growth, driven by the first-time contribution from acquisitions and a good organic performance in the UK and Ireland. Jam and Stampede, DCC Technology’s recent North American acquisitions, have been integrated into the Group and are performing well.
Year ending 31 March 2019
Notwithstanding the milder winter weather conditions, DCC expects that operating profit will be significantly ahead of the prior year and will be in line with current market consensus expectations.
The Group’s market leading positions, combined with the recent significant development activity and its strong and liquid balance sheet, provide DCC with the platforms, opportunities and capabilities to build the Group into a global leader in its chosen sectors.
DCC expects to announce its results for the year ending 31 March 2019 on 14 May 2019.