Commenting on the results, Tommy Breen, Chief Executive, said:
“I am very pleased to report that the year ended 31 March 2016 was a record year of performance and development for DCC. Group operating profit of £300.5 million was 35.5% ahead of the prior year. This excellent result was driven significantly by DCC Energy, where we benefitted from the Group’s two largest ever acquisitions, and also by very strong performances from the Healthcare and Environmental divisions, notwithstanding a more difficult background for DCC Technology.
The completion and successful integration of both Butagaz and Esso Retail France were significant achievements during the year and have materially increased the scale of our Energy business. Both acquisitions are trading well."
Operating profit in DCC Energy, the Group’s largest division, was 71.9% ahead of the prior year (79.6% ahead on a constant currency basis), largely driven by the significant acquisitions completed during the year of Butagaz, Esso Retail France and DLG, all of which traded at, or ahead of, expectations. Although DCC Energy was adversely impacted by the relatively mild winter weather conditions, a good margin and cost performance was achieved.
The LPG business had an excellent year, benefiting from the acquisition of Butagaz and a substantial reduction in the underlying cost of product. Butagaz, which has performed strongly since acquisition, has significantly increased the scale of DCC Energy’s LPG operations and on a pro-forma basis DCC Energy now sells approximately 1.2 million tonnes of LPG with leading market positions across six countries in Western Europe.
Excluding Butagaz, despite the mild winter weather, the business achieved good organic volume growth, driven by both increased sales to existing commercial and industrial customers and also oil to LPG conversions, as the commercial and environmental benefits of LPG over other fuels are increasingly recognised by customers.
Further information and results presentation can be found at http://www.dcc.ie/