DCC today issued improved guidance for its full-year operating profit, saying it expected a "modest" improvement.
Chief executive Tommy Breen said the group is expecting a "mid to high single digit percentage increase" in operating profit for the year, which ends on March 31st 2011.
"This represents a modest improvement on previous guidance and continues to be framed against an assumption that the weather pattern will not be as favourable as in the prior year, which was particularly cold," he said in a statement.
The group reported a strong first half, with operating profit rising across its divisions.
Group operating profit grew by 16.5 per cent, while profit before net exceptional items, amortisation of intangible assets and tax increased by 13.9 per cent on a constant currency basis.
Revenue was lifted by acquisitions, particularly in DCC Energy, and rose by 37.3 per cent on a constant currency basis.
Excluding DCC Energy, which saw sales rise by 31 per cent, group revenue was 11 per cent higher than a year ago.
Davy Stockbrokers said the first-half results were "comfortably ahead" of its expectations. "Encouragingly, all five divisions contributed to group operating profit growth and all businesses beat our forecasts," analyst Caren Crowley wrote in a note.
The board said it would pay an interim dividend of 26.11 cent per share,up 10 per cent on the same period a year earlier.
Mr Breen said the group’s financial position remains “very strong”, and said it was well positioned to pursue acquisition opportunities.
Shares in DCC gained 2.86 per cent on the Irish market today, trading at €21.92 by 3.45pm.
