DCC, the conglomerate with interests spanning from warehousing and logistics for retailers to making nutritional supplements, today smashed City forecasts thanks to surging revenues supplying PPE and covid equipment to GPs and hospitals.
The company also saw a surge in demand for supplements it manufactures for its clients such as Vitabiotics as people sought to boost their immune systems during the pandemic.
DCC’s business supplying consumer goods behind the scenes to the customers of online retailers saw a big jump in tech product sales as people invested in better equipment to work and play at home.
Profits jumped 7.3% in the year to 31 March, to £530.2 million, beating market forecasts and the group will increase its total dividend by 10% for the year.
DCC spent £375 million on acquisitions during the year, particularly growing its US operations in fuel distribution.
Donal Murphy, chief executive, hailed the numbers and said he expected DCC’s strong performance supplying hospitals and GPs with reliable PPE would stand it in good stead for future contracts.
“There was a definite panic [in many countries] trying to get their hands on products because there were low quality products coming into the system. We demonstrated the quality of our work to the NHS. Absolutely in situations like this trusted partners who demonstrate their quality... will come out stronger.”
The company is the number one provider of PPE to UK GPs and one of the biggest to hospitals.
While it benefited from the boom of PPE demand, Murphy said that had been offset by the sudden decline in the number of elective surgeries during the pandemic which hit its business supplying kit for operations.