DCC has reported pre-tax profits of €189.6m for the year ending March 2011, an 18% increase on the previous year. Revenues rose by 29.1% to €8.680 billion with all five of the company's divisions reporting operating profit growth.
DCC said that it continued to see difficult economic and trading conditions in some of its markets, but it still managed to increase its group operating profit by 15.5% on a constant currency basis to €230m.
The company said the outlook for next year is framed against an uncertain economic environment, especially in the UK. It said that its energy division has been impacted by what was the mildest April on record with temperatures much higher than last year.
DCC said its energy division saw a 38.7% increase in revenue for the year to €6.130 billion, with operating profits up 21% to €137.3m as the division benefited from the successful integration of a number of acquisitions and another severe winter.
DCC Energy sold 7.1 billion litres of product last year, an increase of 15.5%. It said that despite the weak economic environment in Ireland, there was a modest recovery in the profitability of the Irish oil business.
Revenues at DCC's SerCom division rose by 15.5% to €1.869 billion with annual operating profits up 12.7% to €46m. The business in the UK performed well, while the unit's Reseller distribution business saw significant operating profit growth in both Ireland and the UK.
DCC said that revenues at its healthcare division fell by 3.2% to €323.3m while operating profits rose by 9.7% to €23.2m in a challenging market background. The company said the Irish Government's austerity measures have reduced demand and increased price pressure in the public healthcare system impacted margins.
The company's environmental division saw a 37.6% jump in revenues to €106.4m while operating profits rose by 24.7% to €11.6m. DCC said the Irish end of the business made progress during the year and recorded growth in operating profit despite the challenging market conditions.
Revenues at DCC's food and beverage division declined by 8.3% to €252.2m while operating profits grew by 36% to €11.5m - despite the impact of weak consumer spending in Ireland.
The company said it was recommending a 10% increase in its final dividend to 74.18 cent.
'The outlook for the year to March 2012 is framed against an uncertain economic environment, particularly in the UK, and the significant assumption that there will be a return to a more normal weather pattern compared to the extremely cold winter last year,' commented DCC's chief executive Tommy Breen.
'At this very early stage the group anticipates that operating profit and adjusted earnings per share will be broadly in line with the prior year,' he added.
He said the outlook excludes the potential benefit of acquisitions and the group remains in a very strong financial position to pursue opportunities in the year ahead.
