12 July 2019

DCC plc

Interim Management Statement

Good Growth in First Quarter Operating Profit and Guidance for the Year Reiterated

DCC plc, the leading international sales, marketing and support services group, is issuing this Interim Management Statement in advance of the Company's AGM to be held in Dublin at 11.00 am today. 

First quarter ended 30 June 2019

DCC traded in line with expectations and delivered good growth in Group operating profit for the first quarter ended 30 June 2019, driven by acquisitions completed in the prior year.

Year ending 31 March 2020

DCC's profits are significantly weighted towards the second half of its financial year. At what is still a very early stage in the financial year, the Group reiterates its belief that the year ending 31 March 2020 will be another year of profit growth and development.  

Development activity

DCC Technology recently completed the acquisitions of Comm-Tec in Germany and Amacom in the Netherlands, following receipt of customary regulatory approvals. Both Comm-Tec and Amacom will significantly enhance DCC Technology's service offering in Continental Europe and will strengthen its relationships with suppliers and customers in the region.

DCC Retail & Oil also recently finalised the creation of a new branded aviation fuels marketing and distribution business in Denmark with Shell Aviation, which involved Shell Aviation purchasing an interest in DCC's existing Danish aviation fuels business.

Further detail regarding each of the above transactions is included in DCC's Development Update announcement of 14 May 2019.

DCC has grown substantially in recent years and now has significant operations across 18 countries, with market-leading positions in each of its LPG, Retail & Oil, Technology and Healthcare divisions. DCC's ambition and capacity for further development, together with the Group's leading market positions and increased geographic reach, provide substantial opportunity for the continued growth and development of the business.

Disposal

DCC Vital recently entered into an agreement to dispose of its UK generic pharma activities and related manufacturing facility in Ireland (Kent Pharma and Athlone Laboratories), subject to regulatory and other consents. The disposal will sharpen the strategic focus of DCC Vital, allowing it to concentrate on those areas where it has market leading positions and sustainable competitive advantage, in particular in the sales, marketing and distribution of medical products in Britain and Ireland. DCC Vital will also continue to develop its pharma activities in Ireland which encompass a market leadership position in the procurement and sales of Exempt Medicinal Products and agency distribution into the hospital and retail pharmacy segments.

Forthcoming events

DCC expects to announce its interim results for the six months ending 30 September 2019 on Tuesday 12 November 2019.

For reference:                                                                                                                                 

Donal Murphy, Chief Executive

Fergal O'Dwyer, Chief Financial Officer

Kevin Lucey, Head of Capital Markets

Telephone: +353 1 2799 400

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, Technology and Healthcare.

DCC is an ambitious and entrepreneurial business operating in 18 countries, supplying products and services used by millions of people every day. 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 12,700 people, DCC's four divisions are:

·    DCC LPG - a leading LPG sales and marketing business with operations in Europe, the US 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 and commercial fuels, heating oils and related products and services in Europe;

·    DCC Technology - a leading route-to-market and supply chain partner for global technology brands and customers; and

·  DCC Healthcare - a leading healthcare business, providing products and services to healthcare providers and health and beauty brand owners.

DCC plc is listed on the London Stock Exchange and is a constituent of the FTSE 100. In its financial year ended 31 March 2019, DCC generated revenue of £15.2 billion and operating profit of £460.5 million. 

DCC has an excellent record, delivering compound annual growth of 14.6% in operating profit and generating an average return on capital employed of approximately 19% over 25 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.