LONDON (ShareCast) - (Sharecast News) - DCC reported an 11.3% fall in first-half revenue on Tuesday, to £9.62bn, although adjusted operating profit rose 12% to £247.6m, or 12.2% at constant currency.
The FTSE 100 company said the growth in adjusted operating profit was driven by a strong performance in DCC Energy, which saw a significant increase of 28.9% at constant exchange rates to £170.6m.

On the other hand, DCC Healthcare and DCC Technology reported declines in their operating profits of 11.3% and 15%, or 12% and 13.4%, respectively, at constant currency.

Adjusted earnings per share grew 1.9% year-on-year, or 2.3% at constant currency exchange rates, to 149.3p for the six months ended 30 September.

The company declared an interim dividend of 63.04p per share, reflecting a 5% increase compared to the prior year.

DCC's net debt, excluding lease creditors, stood at £1.04bn, a significant increase from £782.3m in 2022.

During the period, DCC said it made significant strategic moves, committing around £310m to new acquisitions in DCC Energy.

That included the acquisition of Progas, a nationwide distributor of LPG in Europe's largest energy market, Germany, for £140m.

Additionally, DCC acquired five energy management and services businesses, further expanding its presence in the high-growth sector.

Despite market challenges, DCC said it was optimistic about its prospects, expecting the fiscal year ending on 31 March to continue operating profit growth in line with expectations.

DCC also anticipated continued development activities to support its growth strategy.

"We delivered strong profit growth in the first half of our financial year," said chief executive officer Donal Murphy.

"Although the macro environment remains volatile, DCC continued to perform thanks to our resilient and diverse business."

Murphy said DCC Energy traded strongly while continuing to execute the 'Cleaner Energy in Your Power' strategy it outlined earlier in the year.

"During the period we committed to seven acquisitions aligned to our strategic priorities to give all our customers the power to choose a cleaner energy future."

At 1154 GMT, shares in DCC were up 8.53% at 5,064p.

Reporting by Josh White for Sharecast.com.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE