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Investing.com -- DCC Plc (LON:DCC) reported a 4.9% increase in total adjusted operating profit to £703.6 million for the year ending March 31, 2025, the company said Tuesday.
Shares of the company were down 3.3% at 04:01 ET (08:01 GMT).
The energy division was the primary driver, with an 8.5% rise in operating profit on a constant currency basis.
The energy and technology group based in Dublin also proposed a 5% increase in its annual dividend. The total proposed dividend is 206.40 pence per share.
Group revenue from continuing operations fell by 4.5% to £18 billion, mainly due to lower energy commodity prices.
However, revenue from DCC energy’s services grew significantly by 96.9% to £336.4 million. The company reported strong cash generation with an 84% free cash flow conversion rate.
DCC outlined its plan to sell its healthcare division for £1.05 billion, with completion expected in the third quarter.
The company intends to return £800 million of the net proceeds to shareholders, starting with a £100 million share buyback.
The focus shifted towards DCC’s energy business, including the sale of its Hong Kong & Macau operations and acquisitions in Europe. The carbon intensity of energy profits improved by 8.5%.
DCC Technology’s revenue saw a slight increase of 0.3% to £4.6 billion, but its operating profit decreased by 15.7% to £82 million due to weaker demand in its Info Tech segment.
DCC healthcare reported an operating profit of £86.1 million, a slight decrease on a constant currency basis, with revenue at £849.4 million.
The company recorded a net exceptional charge after tax of £166.7 million, which included restructuring costs and a goodwill impairment in DCC Technology.
DCC expects "good operating profit growth on a continuing basis, strategic progress and continued development activity" for the year ending March 31, 2026.