Sales and marketing group DCC saw operating profit rise 11.1 per cent to £589.2m (€698m) for the year to the end of March, beating market expectations and allowing for a higher dividend.
The group has proposed an 11.2 per cent increase in the final dividend to 175.78 pence sterling per share, DCC’s 28th straight year of dividend growth.
Adjusted earnings per share rose 11.2 percent to 430.1 pence, the group said.
Revenue grew 32.2 per cent from 2021 to £17.732 billion, with a return on investment of 16.5 per cent.
DCC delivered earnings growth despite a nearly doubling in average product costs thanks to acquisitions in the US and Ireland and volume growth following the lifting of pandemic restrictions.
About £600m was committed to acquisitions during this period, including US appliance retailer Almo, DCC’s largest takeover to date.
Organic volumes rose 6.8 percent on a strong recovery in commercial and industrial demand, DCC said.
Operating profits grew fastest in DCC’s healthcare division (up 22.9 percent from 2021), while its retail and oil and technology divisions also saw double-digit growth compared to 2021.
Free cash flow of £382.6 million reflected the expected reversal of the prior year’s working capital timing benefits, DCC said.
In its full-year results for 2022, the Dublin-based group also announced the formation of DCC Energy, a new business and management structure designed to help its customers achieve their 2050 net-zero targets.
The company expects another year of earnings growth in 2023, it said.
“I am very pleased that DCC has delivered an excellent performance in a challenging macro environment, with earnings growth across all of our businesses, further demonstrating the resilience of our business,” said Chief Executive Donal Murphy.
“Our colleagues across the group have continued to deliver to our healthcare, technology and energy customers and other stakeholders, ensuring the supply of DCC’s essential products and services.
“Although the world is going through a particularly volatile time and supply chain disruption is on the rise, DCC is well positioned to thrive and thrive.
“We are committed to leading our customers in their energy transition by providing innovative and clean energy solutions that help them achieve their net zero goals.”
https://www.independent.ie/business/irish/dcc-grows-profits-111pc-and-promises-higher-dividend-41656981.html DCC increases profits by 11.1 percent and promises a higher dividend