DCC : Final Results Announcement – 31 March 2024

PRESSRELEASE	Monday 3rd April 2023 14 May 2024

FULL YEAR RESULTS

31 MARCH 2024

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Press Release

14 May 2024

Preliminary statement of results for the year ended 31 March 2024

Growth, Development and Strategic Momentum in DCC's 30th Year as a Public Company

• Adjusted operating profit up 4.1% (5.3% on a constant currency basis) to £682.8 million, driven by very strong growth in DCC Energy. DCC Healthcare returned to organic growth in the second half of the year.
• Excellent cash generation, with free cash flow conversion of 100%.
• Proposed increase of 5.0% in annual dividend, marking 30 consecutive years of dividend growth.
• Committed c.£490 million to acquisitions which accelerate the Group's growth and development.
• Acquisition commitments announced today include Next Energy, which materially enhances DCC
  Energy's energy transition capability in the domestic sector in the UK. This acquisition will add to DCC
  Energy's share of profits from services, renewable and other products ("SRO")1, which reached 35% this year (2023: 28%, 2022: 22%), demonstrating progress and momentum in executing DCC Energy's
  Cleaner Energy in Your Power strategy.
• DCC expects that the year ending 31 March 2025 will be a year of strong operating profit growth and continued development activity.

Donal Murphy, Chief Executive, commented:

"We are pleased to announce that we delivered a year of growth, development and strategic progress

• in our 30th year as a public company. The very strong growth delivered by DCC Energy was the highlight of the year, and it is also encouraging that DCC Healthcare returned to organic growth in the second half of the year. We are executing our Cleaner Energy in Your Power strategy in DCC Energy and have real momentum as we build the offerings that enable customers to make cleaner energy choices. Our growth this year is again testament to our 16,600 people who continue to go above and beyond. As we reflect on three decades of growth, we're excited about what lies ahead: the growing need for cleaner energy, lifelong health and progressive technology."

Financial Highlights	2024	2023	% change	% change CC2
Revenue		£19.859bn	£22.205bn	-10.6%	-9.6%
Adjusted operating profit3		£682.8m	£655.7m	+4.1%	+5.3%
DCC Energy		£503.0m	£457.8m	+9.9%	+10.8%
DCC Healthcare		£88.1m	£91.8m	-4.0%	-3.6%
DCC Technology		£91.7m	£106.1m	-13.6%	-10.7%
Adjusted earnings per share3		455.0p	456.3p	-0.3%	+0.9%
Dividend per share		196.57p	187.21p	+5.0%
Free cash flow3		£681.1m	£570.4m
Return on capital employed3	14.3%	15.1%

1. SRO = Services, Renewables and Other. Main elements include EMS (solar, renewable electricity), digital fleet services (fuel cards), bio/renewable fuels and non-fuel retail convenience profits
2. Constant currency ('CC') represents the retranslation of foreign denominated current year results at prior year exchange rates
3. Refer to Alternative Performance Measures on page 42 for further details

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Contact information
Investor enquiries:
Kevin Lucey, Chief Financial Officer	Tel: [phone]
Rossa White, Head of Group Investor Relations	Email: [e-mail]
Media enquiries:
Powerscourt (Eavan Gannon/Pete Lambie)	Tel: [phone]
	Email:[e-mail]

Presentation of results - audio webcast and conference call details

Group and divisional management will host a live audio webcast and conference call of the presentation at 09.00 am BST today. The access details are as follows:

Ireland:	[phone]
UK:	[phone]
International:	[phone]
Passcode:	361826
Webcast link:	https://www.investis-live.com/dcc/662265a15f683912008965b5/wthbx

This report, presentation slides and a recording of the webcast will be made available at www.dcc.ie.

About DCC plc

Invest in what the world needs

DCC is a leading international sales, marketing and support services group. We provide solutions the world needs across three transformative sectors: energy, healthcare and technology; where we acquire, improve and grow diverse businesses. We bring our growth mindset to our businesses in 22 countries across four continents, empowering our 16,600 employees to create long term value - for our shareholders, customers, society and the planet.

Headquartered in Dublin, DCC plc is listed on the London Stock Exchange and is a constituent of the FTSE 100. In our financial year ended 31 March 2024, DCC generated revenues of £19.9 billion and adjusted operating profit of £682.8 million. DCC has an excellent record, delivering compound annual growth of 14% in adjusted operating profit and unbroken dividend growth of 13% while maintaining high returns on capital employed over 30 years as a public company.

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www.dcc.ie

Forward-looking statements

This announcement contains some forward-looking statements that represent DCC's expectations for its business, based on current expectations about future events, which by their nature involve risk and uncertainty. DCC believes that its expectations and assumptions with respect to these forward-looking statements are reasonable, however because they involve risk and uncertainty as to future circumstances, which are in many cases beyond DCC's control, actual results or performance may differ materially from those expressed in or implied by such forward-looking statements.

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GROUP & DIVISIONAL PERFORMANCE REVIEW

A summary of the Group's results for the year ended 31 March 2024 is as follows:

	2024	2023
	£'m	£'m	% change
Revenue	19,859	22,205	-10.6%
Adjusted operating profit1
DCC Energy	503.0	457.8	+9.9%
DCC Healthcare	88.1	91.8	-4.0%
DCC Technology	91.7	106.1	-13.6%
Group adjusted operating profit1	682.8	655.7	+4.1%
Finance costs (net) and other	(104.8)	(81.4)
Profit before net exceptionals, amortisation of intangible	578.0	574.3	+0.6%
assets and tax
Net exceptional charge before tax and non-controlling interests	(40.2)	(31.6)
Amortisation of intangible assets	(114.1)	(111.1)
Profit before tax	423.7	431.6	-1.8%
Taxation	(83.2)	(84.8)
Profit after tax	340.5	346.8
Non-controlling interests	(14.2)	(12.8)
Attributable profit	326.3	334.0
Adjusted earnings per share1	455.0p	456.3p	-0.3%
Dividend per share	196.57p	187.21p	+5.0%
Operating cash flow	913.0	785.5
Free cash flow1	681.1	570.4
Net debt at 31 March (excl. lease creditors)	(784.7)	(767.3)
Lease creditors	(362.4)	(346.6)
Net debt at 31 March (incl. lease creditors)	(1,147.1)	(1,113.9)
Total equity at 31 March	3,183.0	3,058.3
Return on capital employed (excl. IFRS 16)	14.3%	15.1%
Return on capital employed (incl. IFRS 16)	13.5%	14.2%

1 Refer to Alternative Performance Measures on page 42 for further details

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INCOME STATEMENT REVIEW

Group revenue

Group revenue decreased by 10.6% (9.6% on a constant currency basis) to £19.9 billion, driven by the reduced wholesale cost of energy for DCC Energy.

Revenue in DCC Energy was £14.2 billion, a decrease of 11.8% (11.0% on a constant currency basis). With like-for-like volumes modestly behind the prior year (2.6%), the significant decrease in revenue was as a result of the lower wholesale cost of energy commodities during the year.

DCC Healthcare recorded revenues of £859.4 million, an increase of 4.6% (5.2% on a constant currency basis). The revenue growth was driven by the acquisition of Medi-Globe completed in September 2023. Organically, revenue declined by 0.3% as growth in DCC Vital was offset by reduced demand in DCC Health & Beauty Solutions.

Revenue in DCC Technology was £4.8 billion, a decrease of 9.3% (7.8% on an organic constant currency basis) driven by a weaker market for consumer technology products.

Group adjusted operating profit

Group adjusted operating profit increased by 4.1% to £682.8 million. Strong organic growth in DCC Energy was offset, as anticipated, by the more difficult trading environment across DCC Healthcare and DCC Technology. The impact on reported Group adjusted operating profit of foreign exchange (FX) translation, M&A growth and organic growth was as follows:

Financial Year	FX translation	M&A	Organic	Reported growth
2024	-1.2%	+4.5%	+0.8%	+4.1%
2023	+3.5%	+7.6%	+0.2%	+11.3%
2022	-4.0%	+9.0%	+6.1%	+11.1%

Average sterling exchange rates versus the euro were broadly consistent during the year, but sterling strengthened against the US dollar and some Nordic currencies, which led to negative FX translation overall for the Group. The net impact of currency translation in the current year was a headwind of 1.2%, or £7.9 million, in the reported growth in adjusted operating profit.

Acquisitions completed in the current and prior year contributed 4.5% of the reported operating profit growth. The material contribution came from the prior year acquisition of Medi-Globe and the current year acquisition of Centreco.

Organic operating profit growth was modest at 0.8% and was driven by the strong organic performance of DCC Energy. As reported during the year, DCC Healthcare and DCC Technology experienced more difficult market conditions and declined organically. The inflationary environment continued as a significant feature of the year across each division, with the overall organic profit growth achieved despite the 7.5% (or £131.2 million) increase in the Group's like for like overhead cost base. Further commentary on the trading performances of each of the three divisions is detailed below.

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DIVISIONAL PERFORMANCE REVIEWS

DCC Energy		2024		2023		% change		% change CC
Volumes (billion litre equivalent)1		15.2bn	15.5bn	-2.2%
Gross profit		£1.757bn	£1.566bn	+12.2%		+13.2%
Operating profit		£503.0m	£457.8m	+9.9%		+10.8%
Operating profit per litre2		3.31ppl	2.95ppl
Return on capital employed excl. IFRS 16	18.7%		19.0%
Return on capital employed incl. IFRS 16	17.4%		17.6%

• DCC Energy recorded operating profit of £503.0 million, up 9.9% (+10.8% constant currency). Organic profit growth was 5.9%, driven by a very strong Energy Solutions performance.
• In successfully executing our strategy, DCC Energy's share of operating profit from services, renewables and other (SRO) products increased to 35% from 28% in FY23 (FY22: 22%). DCC Energy's strong profit growth, together with a reduction in Scope 3 carbon emissions of 3.1%, reduced the carbon intensity of our profits further by 11.8%.
• We committed c.£485 million to 15 acquisitions in line with our Cleaner Energy in Your Power strategy. In February 2024 we significantly expanded our presence in the German liquid gas market by acquiring Progas. We completed nine acquisitions which expand our energy management services ("EMS") offering, including in solar (Centreco in the UK and Secundo in Austria), combined heat & power units and back-up generation services (DTGen), energy efficiency and procurement services (eEnergy) and in domestic energy transition services (Next Energy, as announced today).

DCC Energy Solutions		2024		2023		% change		% change CC
Volumes (billion litre equivalent)		10.7bn	10.9bn	-2.4%
Operating profit		£383.4m	£335.7m	+14.2%		+15.0%
Operating profit per litre		3.60ppl	3.07ppl

DCC Energy Solutions had an excellent year, growing operating profit by 14.2% (15.0% constant currency) to £383.4 million. Our Solutions business is managed across four operating regions: continental Europe, UK & Ireland, North America and the Nordics.

Our Solutions business in continental Europe delivered very strong growth during the year. In France, our largest market, we delivered strong growth. The natural gas and power sector recovered from difficult market conditions in the prior year, and we also delivered very strong growth in our EMS (particularly solar) offering. We continue to build a more integrated customer offering in the French market and during the year we launched our umbrella brand 'WeWise' to highlight our nationwide offering for French commercial and industrial customers - a sector where we have built a market leadership position. In Germany we also delivered good growth and in February 2024 acquired Progas, which when combined with our existing business, gives us scale and a leading position in the liquid gas

1. Billion litres equivalent provides a standard metric for the different products and solutions that DCC Energy sells. Metric tonnes and kilowatts of power are converted to litres.
2. c.25% (£124m) of DCC Energy's operating profit has no associated volumes such as solar installations, heat pump solutions, fleet services, energy efficiency services, lubricants, and refrigerants. Operating profit per litre based on the remaining 75% is 2.49ppl (2023: 2.22ppl).

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market. We plan to build on this strong foundation in the market and add an EMS customer offering in Germany in due course.

Our UK & Ireland business recorded strong growth during the year. The mild winter conditions and cost of living concerns were a headwind for the business, particularly in the domestic fuels sector. However, this was more than offset by a recovery in the natural gas and power sector in Ireland, increased market share in the liquid gas sector with commercial and industrial customers and strong growth in our EMS offering to customers in both the UK and Ireland. During the year we commissioned the Avonmouth storage facility and recently added a new supply point in Teeside, both of which have improved the robustness of our supply chain. In the Irish natural gas and power market, we increased our customer numbers and the business benefited from our procurement strategy. We completed five acquisitions in the UK and Ireland which strengthen our offerings in EMS, energy transition services and renewable fuels and these have performed well since acquisition.

While all regions saw mild winter weather conditions the impact was most material in North America, where domestic heating constitutes a large proportion of the business. This resulted in profits declining in North America. We continue to make progress in developing our sales and marketing capability in the region and completed a further bolt on acquisition in the attractive Colorado market.

We achieved very strong profit growth in Scandinavia. The growth was driven by a very strong performance by our liquid gas business in Sweden and Norway. The business has grown market share and attracted large commercial and industrial customers seeking greater energy independence, given the volatile energy markets of recent years.

DCC Energy Mobility		2024		2023		% change		% change CC
Volumes (billion litre equivalent)		4.5bn	4.6bn	-1.6%
Operating profit		£119.6m	£122.1m	-2.1%		-0.7%
Operating profit per litre		2.64ppl	2.65ppl

Our Mobility business performed robustly and in line with expectations, with operating profit broadly in line with the prior year on a constant currency basis. Following a strong first half, the business was impacted, particularly in the third quarter, by competitive headwinds in the French market. We achieved good growth across the rest of the business. Our digital, truckstop and other fleet services performed well during the year. We again delivered strong growth in fuelcard and through our technology-enabled SNAP service offering to fleet customers.

In France, where we have an extensive retail network, market conditions were difficult during the second half of the year and particularly in the third quarter. Very competitive promotional pricing in the market impacted volumes and profitability. Our team responded well to this challenging environment and both the volume and profit trajectory improved materially during the fourth quarter of the year, as promotional pricing eased. We continued to invest in the network in France, increasing our electric vehicle (EV) chargers to 134 across 28 sites.

In the Nordic region, the business performed strongly. We recorded very good growth in Sweden, where the business recovered from a weaker performance in the prior year. In Norway, the business also recorded strong growth. We continued to invest in both our convenience and EV offering where we now have EV charging capability on 25% of our Norwegian sites. Our 'mobility hub' concept, where we offer traditional fuel, low carbon biofuel, as well as EV charging, has attracted significant market attention. In May 2024, our site at Mandal won 'Best EV Hub in the World' in an international industry competition.

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DCC Healthcare		2024		2023		% change		% change CC
Revenue		£859.4m	£821.5m	+4.6%		+5.2%
Gross profit		£244.6m	£220.3m	+11.0%		+11.3%
Operating profit		£88.1m	£91.8m	-4.0%		-3.6%
Operating margin	10.3%		11.2%
Return on capital employed excl. IFRS 16	10.2%		13.0%
Return on capital employed incl. IFRS 16	9.9%		12.5%

• DCC Healthcare returned to organic profit growth in the second half of the financial year, following a challenging first half. Operating profit for the year declined by 4.0% (3.6% constant currency) to £88.1 million, a decline of 11.3% organically.
• DCC Vital recorded good profit growth. DCC Healthcare's operating profit decline was driven by DCC Health & Beauty Solutions, where reduced demand from customers was a feature of the first nine months of the year. Market conditions for DCC Health & Beauty Solutions improved gradually during the second half of the financial year, and the business returned to organic growth.
• DCC Healthcare has made significant capital investment in recent years, both in acquisitions (in DCC Vital) and capital expenditure (in DCC Health & Beauty Solutions). We are well positioned to increase profitability and returns in the coming years, given our investments in capacity and the improved performance in the second half of the year, and attractive long-term market growth fundamentals.

Divisional Revenue

DCC Healthcare recorded revenue of £859.4 million, an increase of 4.6%. Organically, revenue declined by 0.3% as growth in DCC Vital was offset by reduced demand in DCC Health & Beauty Solutions.

DCC Vital: Patient Health

DCC Vital delivered good operating profit growth, benefiting from the prior year acquisition of Medi- Globe. The business performed well across most regions, other than the UK, where difficult market conditions - NHS budgetary constraints, clinical staff shortages and industrial action by front line medical personnel - impacted activity levels.

Following the complementary acquisition of Medi-Globe, we now have a material international growth platform in medical devices. DCC Vital enjoys strong market positions in medical devices in Ireland, the UK, France and Germany, in addition to a number of other markets. The business delivered good organic growth in the year, with particularly good performances in Ireland, France and Germany, including in the gastroenterology and urology product categories.

In primary care, we performed well in Germany, in line with expectations, and generated very strong growth in Switzerland, driven by market share gains. The British business experienced weaker demand as previously mentioned. We continued our strategic investment in technology (ERP, digital sales and AI) to provide an enhanced platform for growth in primary care, improved customer experience and efficiency.

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DCC Health & Beauty Solutions: Consumer Health

DCC Health & Beauty Solutions experienced a continuation of the challenging market conditions seen in the prior year, especially during the first half of the financial year. The exceptional surge in demand during the pandemic led ultimately to an extended period of market destocking, which persisted longer than market participants anticipated. Demand from our brand-owner customers improved gradually as the second half of the year progressed, albeit at a slower pace than we expected at the start of the year. Given the market conditions, we focused on driving efficiency during the year across the business, including the consolidation of our smallest US facility into one of our larger sites in Florida.

DCC Health & Beauty Solutions addresses a market that is underpinned by positive long-term consumer trends towards lifelong health. Nutritional supplements has been a long-term growth market and industry analysts project it to return to mid-single digit growth. We have invested with that positive future in mind: completing two gummy manufacturing lines during the last 12 months and enhancing our capability in stick packs, a key packaging format for the growing powder nutrition category. During the year, we also enhanced our leadership and demand creation teams to leverage our enhanced product format capability and expanded capacity.

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DCC Technology		2024		2023		% change		% change CC
Revenue		£4.774bn	£5.264bn	-9.3%		-7.8%
Gross profit		£596.0m	£618.4m	-3.6%		-1.7%
Operating profit		£91.7m	£106.1m	-13.6%		-10.7%
Operating margin	1.9%		2.0%
Return on capital employed excl. IFRS 16	7.6%		8.7%
Return on capital employed incl. IFRS 16	7.2%		8.3%

• DCC Technology recorded operating profit of £91.7 million, a decline of 13.6% (10.7% organic constant currency) principally due to the ongoing trend of lower market demand for consumer technology products.
• Although operating in a challenging market, DCC Technology maintained market share in key segments such as retail within Info Tech in the UK and AV within Pro Tech in North America.
• A strong focus on operational improvements resulted in costs being below prior year levels which limited the impact of negative operating leverage from weak demand in most of our markets. Our transformation plan in the UK delivered profit growth and created capability for the long term. DCC Technology remains focused on operational improvement in the year ahead. We've recently created a single North American leadership team and launched a commercial and operational excellence programme to drive organic profit growth.

Divisional revenue

Revenue declined by 9.3% (7.8% organic constant currency), driven by a weaker market for consumer technology products. The UK and European regions were weakest, with revenue delivery in North America impacted to a lesser extent.

Pro Tech

DCC Technology is the leading specialist distributor of AV products globally, having a particularly strong presence in North America. Pro Tech performed robustly, led by good growth in Pro Audio in North America. We continued to make market share gains in core AV categories and experienced strong growth in other specialist AV categories. In Europe, our performance was mixed. We recorded good growth in Enterprise products, which was offset by a more challenging market elsewhere in our European business. We completed two bolt-on acquisitions in the year in North America and Europe, further strengthening our existing specialisms within AV.

Info Tech

Our Info Tech business distributes high-volume consumer and business IT products to the retail and reseller channels in Europe, with a particularly strong presence in the UK, Ireland and the Nordics. Despite the challenging consumer environment which saw revenue decline, our UK business delivered good profit growth. We continued our optimisation programme, which has improved performance: we increased our market share in the retail segment, reduced costs and improved margins. As reported earlier in the year, we also consolidated a secondary warehouse facility to optimise the output from our National Distribution Centre. Our Irish business traded robustly and in line with expectations. In Europe, operating profit declined as a result of weak consumer demand for consumer technology products.

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