Irish energy sales, marketing and distribution group DCC Plc has confirmed full-year guidance for "good operating profit growth" after a swing to profitability in the second quarter.
The company, which simplified its business model this year with the sale of its healthcare arm and the bulk of its tech business to focus on energy, reported revenues from continuing operations of £7.38bn for the six months to 30 September. That was down 7.1% year-on-year, mainly due to weaker revenue in DCC Energy due to lower commodity prices and a decline in volumes.
DCC Energy sold 6.8bn litres of energy products during the half. Volumes in the Energy Products business were impacted by the disposal of DCC's Hong Kong and Macau operations last year, mild weather in the first quarter and lower commercial demand in a number of markets, while fuel volumes in the Mobility arm fell as a result of what the company called "proactive margin management".
Meanwhile, revenues in what's left of the DCC Technology business - which focuses on professional AV and audio products - fell 2.7% year-on-year to £1.3bn.
Adjusted operating profit fell 5.4% to £206.7m over the six-month period. However, trading improved in the second quarter leading to a "modest" increase in the bottom line.
Looking ahead, the company said: "DCC continues to expect that the year ending 31 March 2026 will be a year of good operating profit growth on a continuing basis, significant strategic progress and ongoing development activity."
The company reiterated its confidence in its simplified business model, with chief executive Donal Murphy saying he was "excited about our growth opportunities as a simpler, stronger DCC Energy". He added: "We expanded our liquid gas activities in Europe, a priority for growth where we have a good pipeline of further development opportunities."
DCC raised its interim dividend by 5.0% to 69.5p per share, "reflecting confidence in the full-year outlook".