2nd Feb 2021 08:28
(Alliance News) - DCC PLC on Tuesday backed achieving "good growth" in annual profit that will top market forecasts.
The FTSE 100-listed Irish support services firm said that in its third quarter ended December, operating profit was "strongly ahead of the prior year".
"Notwithstanding the disruption and uncertainty caused by the global pandemic, the group recorded strong organic operating profit growth, whilst also benefiting from acquisitions completed in the prior year," DCC added.
The DCC LPG unit - a liquefied petroleum gas marketing business - saw "modest organic profit growth" despite reduced volume demand amid lesser activity in the sector.
"DCC Retail & Oil delivered good organic operating profit growth. Although volumes in the quarter continued to be impacted by lower commercial, industrial and transport demand due to Covid-19 restrictions, the impact was less severe than that experienced earlier in the financial year," the company added.
Meanwhile, DCC Technology posted "strong organic operating profit growth in the third quarter". In the B2B arm, market conditions were tricky, however, with DCC citing continued Covid-19 restrictions.
Home-working and strong demand for consumer and audio products was a helpful tailwind for DCC Technology, the company noted.
"The outlook for all economies in which the group operates remains very uncertain, with restrictions generally now increasing again. However, DCC's diverse and resilient business model and the essential nature of the group's products and services has seen it respond well to the challenges of the pandemic and trade robustly," DCC said, looking ahead.
"Assuming normal weather conditions for the balance of the financial year, DCC expects that the year ending 31 March 2021 will be another year of development and good growth in operating profit, ahead of current market consensus expectations."
DCC is penned in to report on its annual results on May 18.
Shares in the company were 3.3% higher at 5,904.00 pence each in London on Tuesday morning.
By Eric Cunha; [email protected]
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