DCC PLC DCC Interim Results Six Months ended 30 September 2012

  DCC PLC (DCC) - Interim Results Six Months ended 30 September 2012

RNS Number : 3811Q
DCC PLC
05 November 2012








6 November 2012

          Interim Results for the Six Months ended 30 September 2012



                              RESULTS HIGHLIGHTS
                                       €             Change on prior year^†
                                                                 Constant
                                                                 currency*
                                                  Reported
      Revenue                   6,053.6m     +42.4%   +32.5%
Operating profit**              62.4m   +9.0% 
                                                              +1.1%
Profit before net exceptional                            
items, amortisation of
intangible assets and tax       53.4m   +9.1% 
                                                              +0.7%
Adjusted earnings per share**   52.24 cent     +12.2%  
                                                              +3.5%
Dividend per share              29.48 cent     +7.5%
Operating cash flow             79.3m (2011: €71.0m)
Net debt at 30 September 2012   242.4m (2011: €145.5m)
^†  based  on continuing  activities i.e. excluding  DCC SerCom's  Enterprise 
distribution business which was  disposed of in June 2012.

*   all  constant currency  figures  quoted in  this  report are  based  on 
retranslating 2012/13 figures at the prior year  translation rate.

** excluding net exceptionals and amortisation of intangible assets.





DCC plc,  the sales,  marketing, distribution  and business  support  services 
group, today announced its results for the six months ended 30 September 2012.



Ø Revenue increased to €6.1 billion (+32.5% on continuing activities and on a
constant currency basis). Approximately 80% of this growth was driven by
acquisitions, principally in DCC Energy.



Ø Operating profit increased to €62.4 million from €57.2 million in the prior
year (+1.1% on continuing activities and on a constant currency basis).

                                      

Ø Operating cash  flow increased to  €79.3 million from  €71.0 million in  the 
prior year.



Ø The interim dividend was increased by 7.5% to 29.48 cent per share.



Ø Acquisition expenditure  of €133 million  committed in the  first half  will 
strengthen DCC's market positions, particularly  in its LPG business with  the 
deployment of circa €100 million  in LPG acquisitions in Britain,  Scandinavia 
and the Benelux region.



Ø The Group continues to  anticipate that the year to  31 March 2013 will  see 
strong growth in operating profit over the prior year.



Commenting on the results Tommy Breen, Chief Executive, said:



"Operating profit and adjusted earnings per share on continuing activities  in 
the seasonally less significant first half  were modestly ahead of budget  and 
the prior year.



The Board has  decided to pay  an interim  dividend of 29.48  cent per  share, 
representing a 7.5% increase on the interim dividend paid in the prior year.



DCC remained very active on  the development front with committed  acquisition 
expenditure of €133  million in  the first  half of  which approximately  €100 
million was committed in the expansion  of its LPG distribution business  with 
acquisitions in Britain, Scandinavia and the Benelux region.



As DCC  enters its  seasonally more  significant second  half, its  full  year 
guidance continues  to be  set against  a weak  economic environment  and  the 
important assumption  that  there will  be  a  return to  more  normal  winter 
temperatures compared to  the extremely  mild winter last  year, which  should 
give rise to a strong recovery in DCC Energy's operating profit.



Overall the Group reiterates the guidance previously provided for the year  to 
31 March  2013  that operating  profit  and  adjusted earnings  per  share  on 
continuing  activities,  both   on  a   constant  currency   basis,  will   be 
approximately 15% ahead  of the prior  year. On a  reported basis this  would 
result in an  approximate 20%  increase in  operating profit  and in  adjusted 
earnings per share compared  to the prior year,  assuming an exchange rate  of 
Stg£0.805 = €1.



The Group remains very well placed to continue the development of its business
in existing and new geographies."







For reference, please contact:

Tommy                               Breen,                               Chief 
Executive
Tel: +353 1 2799 400

Fergal  O'Dwyer,   Chief  Financial   Officer 
Email:investorrelations@dcc.ie

Redmond               McEvoy,                Investor                Relations 
Manager www.dcc.ie






Interim Management Report

For the six months ended 30 September 2012



Results



A summary of the results for the six months ended 30 September 2012 is as
follows:



                        

                         €'m  Change on prior year^†
                                                           
                                                                    Constant
                                                       Reported    currency*
      

      Revenue                              6,053.6   +42.4%    +32.5%


Operating profit**

                                        
DCC Energy                               23.4   +25.1%    +14.8%
DCC SerCom                                            
                                         15.8 +11.1%        +4.0%
DCC Healthcare                           12.1   +14.9%   +6.4%
DCC Environmental                                          
                                        7.8       -0.4%  -9.4%
DCC Food & Beverage                     3.3  -44.2%   -44.2%
      Group operating
      profit                             62.4  +9.0%   +1.1%
Finance costs (net)                     (9.0)
Profit before net
exceptionals,
amortisation of                          
intangible assets and
tax                      53.4            +9.1%   +0.7%
Net exceptional charge                 (6.4)
Amortisation of
intangible assets                      (8.7)
Profit before tax                        38.3
Taxation                               (7.8)
Profit after tax                         30.5
Adjusted earnings per
share**                            52.24 cent   +12.2%   +3.5%
Dividend per share                 29.48 cent  +7.5%    
Operating cash flow      79.3m (2011: €71.0m)
Net debt at 30
September 2012           242.4m (2011: €145.5m)
^

^† based on continuing activities i.e. excluding DCC SerCom's Enterprise
distribution business which was disposed of in June 2012.

*   all  constant  currency  figures  quoted  in  this  report  are  based  on 
retranslating 2012/13 figures at the prior year translation rate.

** excluding net exceptionals and amortisation of intangible assets.





Revenue

Revenue increased to €6.1  billion (+32.5% on continuing  activities and on  a 
constant currency  basis). Approximately  80% of  this growth  was driven  by 
acquisitions, principally in DCC Energy.



DCC Energy's volumes increased by 36.0%, of which 2.9% was organic. Excluding
DCC Energy, revenue in the rest of the Group increased by 9.6%,  approximately 
three quarters of which was organic. This growth was primarily driven by  DCC 
SerCom which achieved strong growth in both its IT and communications  markets 
and its  supply chain  management activities.  DCC Healthcare  also  achieved 
satisfactory organic revenue growth, principally in its pharma business.



Operating profit performance

Operating profit  in the  first  half, from  continuing  activities and  on  a 
constant currency basis, was modestly ahead of budget and the prior year.



DCC Energy generated  strong organic  operating profit growth,  on a  constant 
currency basis, albeit against easier comparatives in the prior year when  the 
weather in  the  first  quarter  was  relatively  mild.  Whilst  acquisitions 
completed in the prior year by DCC Energy in Britain contributed significantly
to revenue, as anticipated  they did not make  any profit contribution in  the 
first half  of  the  current  year.  In  particular,  the  former  Total  oil 
distribution business  (acquired  in  October  2011)  did  not  contribute  to 
operating profit in the first half as  DCC was not in a position to  integrate 
the business into its existing oil distribution operations until clearance was
received from the UK competition authorities.



DCC SerCom generated modest operating profit growth, with good growth in  both 
IT and communications  products and  in its supply  chain management  business 
partially offset by a decline in the home entertainment products market.  DCC 
Healthcare achieved satisfactory operating  profit growth primarily driven  by 
acquisitions while operating profit declined  in DCC's two smaller  divisions, 
DCC Environmental and DCC Food & Beverage.



Approximately  80%  of  the  Group's  operating  profit  in  the  period   was 
denominated in sterling. The average exchange rate at which sterling  profits 
were translated during the period was Stg£0.8055 = €1, compared to an  average 
translation rate of Stg£0.8851 = €1 for  the same period in the prior year,  a 
strengthening of 9% which resulted in  a positive translation impact on  Group 
operating profit of €4.5 million. Consequently, on a reported basis operating
profit from continuing activities increased by 9%.



Finance costs (net)

Net finance  costs  for the  period  increased  to €9.0  million  (2011:  €8.3 
million) primarily  as a  result of  the higher  average net  debt during  the 
period of €313 million compared to €170 million during the six months ended 30
September 2011. The  increase in average  net debt was  primarily due to  the 
cash outlay on  acquisitions in  the previous 12  months of  €199 million  and 
dividends of €65  million offset by  strong free cash  flow generation,  after 
interest, tax and net exceptionals, of €142 million in the same period.



Profit before net exceptionals, amortisation of intangible assets and tax

Profit before net exceptionals, amortisation of intangible assets and tax from
continuing activities  of  €53.4  million  increased by  0.7%  on  a  constant 
currency basis (an increase of 9.1% on a reported basis).



Net exceptional charge and amortisation of intangible assets

The Group incurred  a net  exceptional charge before  tax of  €6.4 million  as 
follows:



                                €'m
Acquisition and related costs  (4.5)
Reorganisation costs and other (1.9)

                                
Total                          (6.4)



Acquisition and related costs include the professional and tax costs (such  as 
stamp duty) relating to the evaluation and completion of acquisitions. During
the first half these costs amounted to €4.5 million and include the legal  and 
other professional costs relating to the review and ultimate clearance by  the 
Competition Commission of the acquisition of the former Total oil distribution
business in Britain.



The charge  for  the amortisation  of  acquisition related  intangible  assets 
increased from €5.3 million to €8.7 million due to the acquisitions  completed 
in the second half of the prior year.



Taxation

The effective  tax rate  for the  Group in  the first  half decreased  to  18% 
compared to 20% in the  first half last year. The  full year tax rate in  the 
previous year was 18%.



Adjusted earnings per share

Adjusted earnings per share from continuing activities of 52.24 cent increased
by 3.5% on  a constant  currency basis  (an increase  of 12.2%  on a  reported 
basis).



Interim dividend increase of 7.5%

The Board has decided to increase the  interim dividend by 7.5% to 29.48  cent 
per share. This dividend will be paid on 30 November 2012 to shareholders  on 
the register at the close of business on 16 November 2012.



Cash flow

As with its operating  profit, the Group's cash  flow is weighted towards  its 
second half. The cash flow generated by the Group and the deployment of cash
on acquisitions and  dividends to  shareholders for  the six  months ended  30 
September 2012 can be summarised as follows:



Six months ended 30 September              2012                 2011
                                                                             
                                          €'m                  €'m
                                                                             
Operating profit                         62.4                   58.3       
                                                                        
      Increase        in               (15.7)                 (10.6)       
      working capital
      Depreciation   and                32.6                  23.3       
      other
                                                                        
      Operating     cash                 79.3                   71.0       
      flow
                                                                        
      Capital                          (33.3)                 (25.9)       
      expenditure (net)
      Interest  and  tax               (27.2)                 (33.7)       
      paid
                                                                        
      Free cash flow                     18.8                   11.4       
                                                                        
      Acquisitions                     (95.6)                 (65.0)       
      Disposals                          14.4                      -       
      Dividends                        (42.4)                 (40.2)       
      Exceptional items                (14.4)                  (5.3)       
      Share issues                        0.5                    0.9       
                                                                        
      Net outflow                     (118.7)                 (98.2)       
                                                                        
      Opening net debt                (128.2)                 (45.2)       
      Translation                      4.5               (2.1)       
      Closing net debt                (242.4)                (145.5)       
      
                                                                        



Operating cash  flow  of  €79.3  million compares  to  €71.0  million  in  the 
corresponding period.  Working capital  remained tightly  controlled with  net 
working capital days at 30 September 2012  reducing to 3.3 days from 5.4  days 
at 30 September 2011,  the decrease being primarily  driven by a reduction  in 
debtor days.



Acquisition and Capital Expenditure

In the six months ended 30  September 2012, committed acquisition and  capital 
expenditure amounted to €166.0 million, as follows:



                                                      Acquisitions  Capex   Total
                                                       
                                                     €'m            €'m   €'m
DCC Energy                                                    117.3   16.7        134.0
DCC SerCom                                                      4.3    1.4          5.7
DCC Healthcare                                                 10.5    8.8         19.3
DCC Environmental                                                 -    5.5          5.5
DCC                      Food                      &            0.6    0.9          1.5
Beverage
Total                                                         132.7   33.3        166.0



Committed acquisition expenditure in the first half amounted to €132.7 million
as follows:



Acquisitions



DCC Energy

DCC Energy  made significant  strategic progress  in expanding  the scale  and 
geographic presence of  its LPG distribution  business, committing circa  €100 
million to three acquisitions in Britain, Scandinavia and the Benelux region.



In August 2012, DCC Energy agreed to acquire BP's LPG distribution business in
Britain. This business supplies  a wide range  of industrial, commercial  and 
domestic customers with  an annual  volume of approximately  87,000 tonnes  of 
bulk and cylinder LPG  and is highly complementary  to Flogas, DCC's  existing 
LPG business  in Britain  (which  has annual  sales volumes  of  approximately 
190,000 tonnes). This acquisition, which was previously announced on 8  August 
2012 and completed on  28 September 2012 is  currently operating under a  hold 
separate arrangement pending a review by the Office of Fair Trading.



In September 2012, DCC Energy agreed to acquire BP's LPG distribution business
in the Netherlands,  together with the  trade and assets  of BP's smaller  LPG 
distribution business  in north  Belgium ("Benegas").  Benegas is  one of  the 
leading suppliers  of LPG  in the  Netherlands, selling  approximately  55,000 
tonnes per  annum of  bulk,  cylinder and  aerosol LPG  to  a broad  range  of 
industrial, commercial and domestic customers. This acquisition, DCC  Energy's 
first in the Benelux region was previously announced on 21 September 2012  and 
completed on 31 October 2012.



Also in September 2012, DCC Energy agreed to acquire the trade, fixed  assets, 
stock and goodwill of the industrial LPG business of Statoil Fuel & Retail ASA
in Sweden and Norway ("SFR LPG"). SFR LPG is the leading distributor of  bulk 
LPG to industrial  and commercial  customers in  Sweden and  Norway and  sells 
approximately 260,000 tonnes  of LPG  per annum.  This acquisition,  together 
with DCC Energy's existing oil distribution businesses in Denmark and  Sweden, 
significantly increases the scale of  DCC Energy's activities in  Scandinavia. 
This acquisition was  previously announced  on 4  September 2012.  Competition 
approval for the transaction has been received from the Swedish and  Norwegian 
authorities and the  acquisition is  expected to complete  in late  2012/early 
2013.



The acquisitions of  Benegas and SFR  LPG will extend  DCC's LPG  distribution 
business for the first  time outside Britain  and Ireland. These  transactions 
follow acquisitions in recent  years in oil  distribution in Austria,  Denmark 
and Sweden in pursuit  of DCC Energy's  vision to be the  leading oil and  LPG 
sales, marketing and distribution business in Europe.



DCC Energy also acquired  two smaller businesses during  the period. In  April 
2012 it  acquired Medical  Gas Solutions  Limited, a  supplier of  oxygen  and 
analgesic  gas  cylinders  to  ambulance   trusts  in  Britain,  an   activity 
complementary  to  the  LPG   distribution  business.  This  acquisition   was 
previously reported in DCC's Preliminary Results announcement of 15 May  2012. 
In August 2012, as  part of its  continuing development of  a presence in  the 
alternative  energy   sector,  DCC   Energy  acquired,   for  modest   initial 
consideration,  Clearpower  Limited,  a   small  business  providing   biomass 
solutions and boilers to commercial customers in Britain and Ireland.



DCC SerCom

DCC SerCom made two  modest acquisitions in line  with its strategy to  expand 
its range of IT and communications products. In May 2012, as reported in DCC's
Interim Management Statement on 20 July  2012, DCC SerCom acquired Go  Telecom 
BV, a  small  Dutch  business  providing  products  and  services  in  unified 
communications (including hardware, software and services for audio, video and
telepresence conferencing). In  September 2012,  DCC SerCom  acquired a  small 
distributor of Apple products in Ireland.



DCC Healthcare

In June 2012, in line with DCC  Healthcare's strategy to broaden the range  of 
services it provides  to brand owners  in the  health & beauty  sector and  to 
expand its  European  customer  base, it  acquired  Vitamex  Manufacturing  AB 
(formerly Midsona  Manufacturing  AB) ("Vitamex").  Vitamex  provides  product 
development, registration, manufacturing  and packing services  to a range  of 
leading Swedish  and international  consumer healthcare  and health  &  beauty 
brand owners. This acquisition was previously announced on 29 June 2012.



The cash outflow on  acquisitions in the  six months to  30 September 2012  of 
€95.6 million includes only those acquisitions completed during the six months
ended 30 September 2012  and deferred and  contingent acquisition costs  which 
had previously been provided for.



Capital expenditure

Net capital  expenditure in  the  first half  of  €33.3 million  (2011:  €25.9 
million) compares  to a  depreciation  charge of  €31.4 million  (2011:  €26.8 
million).



Disposals

The disposal  of DCC  SerCom's  Enterprise business,  Altimate Group  SA,  was 
completed in  June  2012 following  competition  clearance from  the  European 
Commission.



Financial Strength

DCC's financial position remains very strong. At 30 September 2012, the Group
had net debt of €242.4 million and total equity of just over €1 billion.  DCC 
has significant cash resources and undrawn committed long term debt facilities
and its outstanding debt at 30 September  2012 had an average maturity of  4.5 
years. Substantially  all of  the Group's  debt  has been  raised in  the  US 
private placement market with an average credit margin of 1.23% over  floating 
Euribor/Libor.



Outlook

As DCC  enters its  seasonally more  significant second  half, its  full  year 
guidance continues  to be  set against  a weak  economic environment  and  the 
important assumption  that  there will  be  a  return to  more  normal  winter 
temperatures compared to  the extremely  mild winter last  year, which  should 
give rise to a strong recovery in DCC Energy's operating profit.



Overall the Group reiterates the guidance previously provided for the year  to 
31 March  2013  that operating  profit  and  adjusted earnings  per  share  on 
continuing  activities,  both   on  a   constant  currency   basis,  will   be 
approximately 15% ahead  of the prior  year. On a  reported basis this  would 
result in an  approximate 20%  increase in  operating profit  and in  adjusted 
earnings per share compared  to the prior year,  assuming an exchange rate  of 
Stg£0.805 = €1.



The Group remains very well placed to continue the development of its business
in existing and new geographies.

Operating review



DCC Energy                              Change on prior year
                     2012      2011 Reported Constant Currency
      Revenue    €4,751.8m €3,133.3m  +51.7%       +40.7%
Operating profit    €23.4m    €18.7m  +25.1%       +14.8%





DCC Energy had a strong start to  the year, with operating profit 14.8%  ahead 
of the prior year on a  constant currency basis. The business benefited  from 
organic volume growth and the relatively cooler first quarter.



DCC Energy sold 4.4 billion litres  of product during the period, an  increase 
of 36.0% over the first half of the prior year, of which 2.9% was organic.



Volumes in the oil business grew organically by 2.7% over the prior year. The
relatively cooler  weather in  the first  quarter drove  increased demand  for 
heating products,  however  this  was  somewhat offset  by  the  poor  weather 
conditions over the summer months which impacted demand from the  agricultural 
sector. The business also achieved  strong growth in transport fuels  through 
its fuel card business. Whilst acquisitions in Britain completed in the prior
year contributed significantly to  revenue, as anticipated  they did not  make 
any profit contribution in the first half of the current year. In particular,
the former Total oil distribution business (acquired in October 2011) did  not 
contribute to operating profit in the first half as DCC was not in a  position 
to integrate the business into its existing oil distribution operations  until 
clearance was received from the UK competition authorities.



In unconditionally clearing the  Total acquisition, the Compeition  Commission 
("CC") concluded  that  the  acquisition  will not  result  in  a  substantial 
lessening of  competition in  the  oil distribution  market in  Britain.  The 
findings of the CC's report have  provided greater clarity on the  competitive 
conditions in the oil distribution market  in Britain and provide a  framework 
for DCC to consider when undertaking further acquisitions in this sector.  As 
a result, DCC remains confident that it can pursue its objective of increasing
its share of the oil distribution market in Britain to 20% over time.



The LPG business had an excellent first half, achieving strong organic  volume 
growth reflecting both the cooler weather in the first quarter and good growth
in the commercial sector  of the market. The  business also benefited from  a 
more favourable product pricing environment.



During the first half,  DCC Energy committed total  expenditure of circa  €100 
million in the expansion of its  LPG business through the acquisition of  BP's 
businesses in Britain,  the Netherlands  and Belgium  and the  Statoil Fuel  & 
Retail business in Scandinavia. These acquisitions significantly increase the
scale and geographic scope of DCC Energy's LPG business in Europe. The BP LPG
business in Britain is currently  operating under a hold separate  arrangement 
pending a review by the Office of Fair Trading of this acquisition.



As DCC Energy enters the seasonally  more significant second half, it  expects 
to achieve a strong recovery in operating profit for the year to 31 March 2013
over the  prior  year.  This  expectation is  framed  against  the  important 
assumption that there  will be  a return  to more  normal winter  temperatures 
compared to the extremely mild winter last year.





DCC SerCom

Continuing activities (excluding Altimate*)            Change on prior year
                                      2012    2011 Reported Constant Currency
      Revenue                       €922.2m €766.9m  +20.3%       +13.0%
Operating profit                     €15.8m  €14.2m  +11.1%        +4.0%
Operating margin                       1.7%    1.9%



DCC SerCom achieved operating profit growth from continuing activities of 4.0%
on a  constant currency  basis reflecting  strong growth  in both  its IT  and 
communications markets  and its  supply  chain management  business  partially 
offset by difficult trading conditions in the home entertainment market in the
UK and Ireland.



In Britain and Ireland, the sales of  PCs and tablets to the consumer and  SME 
markets grew  very  strongly.  The  business  also  benefited  from  business 
development activities in its mobile communications business unit and is  well 
placed to take  advantage of the  continuing convergence of  the IT,  consumer 
electronics and mobile markets.  In the home  entertainment market, sales  of 
both games  consoles  and related  software  declined sharply  reflecting  the 
highly mature  nature  of  the  current  games  console  product  life  cycle, 
underlying economic conditions and the decision of several software vendors to
concentrate software releases closer to the Christmas period.



In France, weak consumer demand led to margin pressure, although the  business 
was successful in growing its trade with e-tail customers and has expanded its
offering of consumer electronics products.



Notwithstanding an anticipated continuation of challenging trading  conditions 
in the home  entertainment market, DCC  SerCom is well  placed to continue  to 
develop its business on the back of  the breadth of its supplier and  customer 
relationships.





* On 3 April 2012, DCC announced  that it had reached agreement to dispose  of 
Altimate Group  SA,  DCC  SerCom's  Enterprise  distribution  business.  This 
disposal was completed in June 2012.

DCC Healthcare                      Change on prior year
                   2012    2011 Reported Constant Currency
      Revenue    €187.1m €153.8m  +21.6%       +13.3%
Operating profit  €12.1m  €10.5m  +14.9%        +6.4%
Operating margin    6.4%    6.8%



DCC Healthcare  achieved growth  in operating  profit of  6.4% on  a  constant 
currency basis with the  benefit of development activity  in the current  year 
and prior  year  offsetting  challenging market  conditions,  particularly  in 
Ireland.



DCC Hospital Supplies &  Services, which operates  in medical devices,  pharma 
and value added logistics,performed satisfactorily. In medical devices,Forth
Medical Group,  a distributor  of neurology,  orthopaedic and  niche  surgical 
devices in Britain which was acquired in February 2012,performed in line with
expectations.  In  Ireland,  the  budgetary  constraints  within  the  public 
healthcare system have  resulted in  continued price  pressure, especially  in 
more commoditised medical/surgical product categories.



In  pharma,  excellent  organic  revenue  and  profit  growth  was   achieved, 
particularly in the community pharmacy sector  in Britain and Ireland, as  DCC 
Healthcare continued to build  on the platform created  by the acquisition  of 
Neolab's generic product licences in the prior year. The pharma business also
made progress in  the British  hospital and  Irish homecare  sectors with  new 
contract wins.



DCC  Health  &  Beauty  Solutions,  which  provides  outsourced  solutions  to 
nutrition and  beauty  brand  owners,  generated  strong  profit  growth.  In 
nutrition, the strong  performance was  driven by good  organic profit  growth 
together with a first time contribution from Vitamex Manufacturing, a  leading 
Swedish contract manufacturer of nutrition products which was acquired in June
2012. Operating profit in DCC's beauty operations improved, driven by  growth 
with new customers and good cost control.



DCC Healthcare remains well placed for the  year to 31 March 2013, which  will 
have the  full year  benefit  of recent  development  activity in  pharma  and 
medical devices.

DCC Environmental                  Change on prior year
                   2012   2011 Reported Constant Currency
      Revenue     €72.3m €65.4m  +10.6%        +1.8%
Operating profit   €7.8m  €7.9m  -0.4%         -9.4%
Operating margin   10.8%  12.0%



DCC Environmental  had a  difficult  first half,  with operating  profit  9.4% 
behind the  prior year  on a  constant  currency basis,  as the  business  was 
impacted by  a deterioration  in the  British waste  management and  recycling 
market.



Results in Britain  were impacted  by falling recyclate  commodity prices  and 
increased price competition.  In Ireland,  continued tight  control of  costs 
resulted in the business performing broadly in line with the prior year.



It is anticipated that market conditions in the waste management and recycling
sector will remain difficult and DCC Environmental is responding by  improving 
operational efficiencies throughout its business.





DCC Food & Beverage                    Change on prior year
                      2012    2011 Reported Constant Currency
      Revenue       €120.3m €132.0m  -8.9%        -10.6%
Operating profit      €3.3m   €6.0m  -44.2%       -44.2%
Operating margin       2.8%    4.5%



As anticipated,  DCC Food  & Beverage  experienced a  decline in  revenue  and 
operating profit due to the loss of a major contract in the frozen and chilled
logistics business  in the  second half  of  the prior  year and  the  ongoing 
weakness in consumer demand. While its company owned brands (including Robert
Roberts, Kelkin,  Goodall's  and  YR) performed  well,  a  challengingtrading 
environment with  increased parallel  and grey  market sourcing  by  retailers 
further impacted the sales of some third party agency brands.



As previously indicated, DCC Food & Beverage anticipates a continuation of the
difficult trading environment in the second  half and a consequent decline  in 
operating profit for the year to 31 March 2013.



        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 risks  and uncertainties.  DCC 
believes  that  its  expectations  and  assumptions  with  respect  to   these 
forward-looking statements are reasonable;  however because they involve  risk 
and uncertainty, which are in some cases beyond DCC's control, actual  results 
or performance may differ materially from  those expressed or implied by  such 
forward-looking statements.



Principal Risks and Uncertainties

The Board is responsible  for the Group's risk  management systems, which  are 
designed to  identify, manage  and mitigate  potential material  risks to  the 
achievement of the Group's strategic and business objectives. Details of  the 
principal strategic, operational,  compliance and financial  risks facing  the 
Group are set out on pages 62 and  63 of the 2012 Annual Report. These  risks 
continue to be the principal risks and uncertainties facing the Group for  the 
remaining six months of the financial year.



Presentation of results and dial-in facility

There will be a presentation of  these results to analysts and  investors/fund 
managers in Dublin at 9.00 am today. The slides for this presentation can  be 
downloaded from  DCC's  website,  www.dcc.ie.  A  dial-in  facility  will  be 
available for this meeting:



Ireland:  1800 946 811



UK: 0800 783 0906



International: +44 1296 480 100 / +353 1 242 1074



Passcode:  382 975



This announcement and further information on DCC is available at www.dcc.ie





Group Income Statement

                                         Unaudited 6 months ended                  Unaudited 6 months ended                  Audited year ended
                                            30 September 2012                         30 September 2011                         31 March 2012
                                 Pre exceptionals Exceptionals                      Pre                                   Pre                       
                                                                            exceptionals                            exceptionals
                                                      (note 6)       Total               Exceptionals       Total               Exceptionals       Total
                         Notes              €'000        €'000       €'000         €'000         €'000       €'000         €'000        €'000       €'000
Revenue                   5            6,053,650            -   6,053,650     4,395,045             -   4,395,045    10,690,341            -  10,690,341
Cost of sales                         (5,666,306)            - (5,666,306)   (4,075,294)             - (4,075,294)   (9,934,168)            - (9,934,168)
Gross profit                              387,344            -     387,344       319,751             -     319,751       756,173            -     756,173
Administration expenses                 (139,395)            -   (139,395)     (109,869)             -   (109,869)     (266,950)            -   (266,950)
Selling and distribution                (190,579)            -   (190,579)     (156,698)             -   (156,698)     (317,281)            -   (317,281)
expenses
Other operating income                     10,073            -      10,073         7,175         2,795       9,970        16,583       17,676      34,259
Other operating                           (5,041)      (6,349)    (11,390)       (2,103)      (10,695)    (12,798)       (3,499)     (40,033)    (43,532)
expenses
Operating profit before                                                                                                                         
amortisation of intangible
assets                                     62,402      (6,349)      56,053        58,256       (7,900)      50,356       185,026     (22,357)     162,669
Amortisation of intangible      (8,703)            -     (8,703)                  -     (5,337)      (11,379)            -    (11,379)
assets                                                                           (5,337)
Operating profit           5               53,699      (6,349)      47,350        52,919       (7,900)      45,019       173,647     (22,357)     151,290
Finance costs                            (26,507)            -    (26,507)      (24,404)             -    (24,404)      (50,447)            -    (50,447)
Finance income                             17,510            -      17,510        16,130         1,730      17,860        32,578          670      33,248
Share of associates' loss after               (3)            -         (3)          (27)       (1,068)     (1,095)          (40)      (1,068)     (1,108)
tax
Profit before tax                          44,699      (6,349)      38,350        44,618       (7,238)      37,380       155,738     (22,755)     132,983
Income tax expense         7              (7,813)            -     (7,813)       (8,818)             -     (8,818)      (27,703)      (2,234)    (29,937)
Profit after tax for            36,886     (6,349)      30,537            (7,238)     28,562       128,035     (24,989)     103,046
                                                                            35,800
the financial
period
Profit attributable to:
Owners of the Parent                                                30,384                                  28,227                                102,428
Non-controlling                                                        153                                     335                                    618
interests
                                                                                                                                                     

Profit after tax for the financial period                           30,537                                  28,562                                103,046
Earnings per ordinary share
Basic                      8                                        36.37c                                  33.86c                                122.78c
Diluted                    8                                        36.27c                                  33.75c                                122.46c
Adjusted earnings per ordinary share
Basic                      8                                        52.24c                                  47.53c                                163.51c
Diluted                    8                                        52.09c                                  47.38c                                163.09c

Group Statement of Comprehensive Income





                                            Unaudited      Unaudited   Audited
                                             6 months       6 months      year
                                                ended          ended     ended
                                             30 Sept.       30 Sept.  31 March
                                                 2012           2011      2012
                                                €'000          €'000     €'000
Profit for the period                          30,537         28,562   103,046
Other comprehensive income:
Currency translation effects             38,625   14,533    46,711
Group    defined    benefit    pension 
obligations:
- actuarial loss                                (469)        (7,612)   (8,791)
- movement in deferred tax asset                   42            997     1,178
(Losses)/gains relating  to cash  flow           (64)          (119)       189
hedges
Movement in deferred tax liability  on             99             43        11
cash flow hedges
Other comprehensive income for the             38,233          7,842    39,298
period, net of tax
Total  comprehensive  income  for  the         68,770         36,404   142,344
period
Attributable to:
Owners of the Parent                           68,617         36,069   141,726
Non-controlling interests                         153            335       618
                                               68,770         36,404   142,344

                                      

                                      





Group Balance Sheet

                                      



                                               Unaudited  Unaudited    Audited
                                                30 Sept.   30 Sept.   31 March
                                                    2012       2011       2012
                                         Notes     €'000      €'000      €'000
ASSETS
Non-current assets
Property, plant and equipment                    506,362    409,918    451,097
Intangible assets                                845,682    708,989    785,205
Investments in associates                          1,170      1,186      1,173
Deferred income tax assets                         3,436      9,783      6,397
Derivative financial instruments                 148,042    150,804    134,531
                                               1,504,692  1,280,680  1,378,403
Current assets
Inventories                                      389,355    295,662    338,170
Trade and other receivables                    1,198,308  1,026,838  1,291,698
Derivative financial instruments                   9,019      2,356      4,294
Cash and cash equivalents                        589,435    617,617    630,023
                                               2,186,117  1,942,473  2,264,185
Assets classified as held for sale                     -          -    142,614
                                               2,186,117  1,942,473  2,406,799
Total assets                                   3,690,809  3,223,153  3,785,202
EQUITY
Capital and reserves attributable to owners of the
Parent
Equity share capital                              22,057     22,057     22,057
Share premium account                            124,687    124,687    124,687
Other reserves - share options            10      12,061      9,999     11,086
Cash flow hedge reserve                   10       1,222        911      1,187
Foreign currency translation reserve      10    (39,800)  (110,603)   (78,425)
Other reserves                            10       1,400      1,400      1,400
Retained earnings                                917,619    877,590    929,331
                                               1,039,246    926,041  1,011,323
Non-controlling interests                          2,564      3,501      2,656
Total equity                                   1,041,810    929,542  1,013,979
LIABILITIES
Non-current liabilities
Borrowings                                       886,604    845,587    848,365
Derivative financial instruments                  12,385     19,322     17,493
Deferred income tax liabilities                   27,596     24,831     32,011
Retirement benefit obligations            12      14,416     23,740     14,745
Provisions for liabilities and charges            15,494     13,009     15,438
Deferred  and   contingent   acquisition          69,475     73,322     85,271
consideration
Government grants                                  1,823      2,151      2,458
                                               1,027,793  1,001,962  1,015,781
Current liabilities
Trade and other payables                       1,473,234  1,179,858  1,533,882
Current income tax liabilities                    30,106     40,828     38,813
Borrowings                                        87,391     48,502     70,999
Derivative financial instruments                   2,511      2,898      1,020
Provisions for liabilities and charges             4,015      4,822      9,966
Deferred  and   contingent   acquisition          23,949     14,741     13,428
consideration
                                               1,621,206  1,291,649  1,668,108
Liabilities   associated   with   assets               -          -     87,334
classified as held for sale
                                               1,621,206  1,291,649  1,755,442
Total liabilities                              2,648,999  2,293,611  2,771,223
Total equity and liabilities                   3,690,809  3,223,153  3,785,202
Net debt included above (including  cash                                  
attributable to asset held for sale)
                                          11   (242,395)  (145,532)  (128,215)

                                      

Group Statement of Changes in Equity



For   the   six                      Attributable to owners of the Parent
months ended 30
September 2012
                         Equity              Share                        Other                            Non-
                          share            premium        Retained     reserves                     controlling         Total
                        capital            account        earnings    (note 10)           Total       interests        equity
                          €'000              €'000           €'000        €'000           €'000           €'000         €'000
At beginning of      22,057            124,687       929,331    (64,752)       1,011,323           2,656     1,013,979
period
Profit for the                -                  -      30,384        30,384  153     30,537
period                                                                        -
Currency         - - -     38,625      38,625      38,625
translation                                                                                                   -
Group   defined                 
benefit pension
obligations:
-     actuarial  -                  -    (469)     (469)  (469)
loss                                                                          -                               -
-  movement  in  -                  -   42    42   42
deferred    tax                                                               -                               -
asset
Losses relating  -                  -  -         (64)  (64)
to  cash   flow                                                            (64)                               -
hedges
Movement     in  -                  -  -  99    99  99
deferred    tax                                                                                               -
liability    on 
cash       flow 
hedges
Total           -                  -       29,957     38,660       68,617   153    68,770
comprehensive
income
Re-issue     of  -                  -     488     488    488
treasury shares                                                               -                               -
Share     based -                  -  -   975     975   975
payment                                                                                                       -
Dividends       -                  -       (42,157)        (42,157)      (42,157)
                                                                              -                               -
Other movements -                  -  -   -   (245)   (245)
in                                                                            -
non-controlling
interests
At    end    of       22,057            124,687        917,619    (25,117)       1,039,246    2,564     1,041,810
period



For   the   six                      Attributable to owners of the Parent
months ended 30
September 2011
                         Equity              Share                        Other                            Non-
                          share            premium        Retained     reserves                     controlling        Total
                        capital            account        earnings    (note 10)           Total       interests       equity
                          €'000              €'000           €'000        €'000           €'000           €'000        €'000
At beginning of          22,057            124,687         895,108    (112,212)         929,640           2,234      931,874
period
Profit for the                -                  -       28,227        28,227   335    28,562
period                                                                        -
Currency         - -  -     14,533      14,533     14,533
translation                                                                                                   -
Group   defined                 
benefit pension
obligations:
-     actuarial  -                  -     (7,612)      (7,612)    (7,612)
loss                                                                          -                               -
-  movement  in -                  -     997      997  997
deferred    tax                                                               -                               -
asset
Losses relating  -                  -  -  (119)     (119)   (119)
to  cash   flow                                                                                               -
hedges
Movement     in  -                  -  -  43   43    
deferred    tax                                                                                               -           43
liability    on 
cash       flow 
hedges
Total           -                  -       21,612     14,457       36,069   335    36,404
comprehensive
income
Re-issue     of  -                  -    931      931   931
treasury shares                                                               -                               -
Share     based -                  - -  (538)    (538)   (538)
payment                                                                                                       -
Dividends        -                  -      (40,061)        (40,061)     (40,061)
                                                                              -                               -
Other movements  -                  -  -   -   932  932
in                                                                            -
non-controlling
interests
At    end    of       22,057            124,687        877,590    (98,293)        926,041    3,501     929,542
period



For  the   year                             Attributable to owners of the Parent
ended 31  March 
2012
                                        Equity            Share                        Other                        Non-
                                         share          premium        Retained     reserves                 controlling       Total
                                       capital          account        earnings    (note 10)           Total   interests      equity
                                         €'000            €'000           €'000        €'000           €'000       €'000       €'000
At beginning of                         22,057          124,687         895,108    (112,212)         929,640       2,234     931,874
period
Profit for the                               -                -        102,428         102,428         618    103,046
period                                                                                     -
Currency                        -   -     46,711      46,711           -   46,711
translation                                                   -
Group   defined                                                 
benefit pension
obligations:
-     actuarial                -                -     (8,791)       (8,791)          - (8,791)
loss                                                                                       -
-  movement  in                -                -     1,178       1,178          -  1,178
deferred    tax                                                                            -
asset
Gains  relating                 -                -  -   189    189          -    
to  cash   flow                                                                                                                  189
hedges
Movement     in                -                -  -  11   11          -  
deferred    tax                                                                                                                   11
liability    on 
cash       flow 
hedges
Total           -             -        94,815     46,911       141,726         618   142,344
comprehensive
income
Re-issue     of -               -      2,372      2,372          -  2,372
treasury shares                                                                            -
Share     based                -                - -   549     549          -    
payment                                                                                                                          549
Dividends                       -                -     (62,964)        (62,964)          -  (62,964)
                                                                                           -
Other movements                 -                - -  -       (196)      
in                                                                                         -                                   (196)
non-controlling
interests
At    end    of                      22,057          124,687        929,331    (64,752)       1,011,323       2,656   1,013,979
period

Group Cash Flow Statement

                             Unaudited                    Unaudited    Audited
                              6 months                     6 months       year
                                 ended                        ended      ended
                              30 Sept.                     30 Sept.   31 March
                                  2012                         2011       2012
                                 €'000                        €'000      €'000
Cash flows from operating
activities
Profit for the period           30,537                       28,562    103,046
Add back non-operating
expenses
- tax                           7,813                        8,818     29,937
- share of loss from                3                        1,095      1,108
associates
- net operating                 6,349                        7,900     22,357
exceptionals
- net finance costs             8,997                        6,544     17,199
Group operating profit          53,699                       52,919    173,647
before exceptionals
Share-based payment                975                        (538)        549
Depreciation                    31,374                       26,785     55,435
Amortisation of intangible       8,703                        5,337     11,379
assets
Profit on disposal of            (575)                        (435)      (838)
property, plant and
equipment
Amortisation of government       (325)                        (299)      (604)
grants
Other                            1,123                      (2,085)    (8,840)
(Increase)/decrease in        (15,659)                     (10,642)     46,594
working capital
Cash generated from             79,315                       71,042    277,322
operations
Exceptionals                  (14,379)                      (5,254)    (2,774)
Interest paid                 (24,001)                     (20,064)   (43,056)
Income tax paid               (18,431)                     (27,511)   (49,829)
Net cash flows from             22,504                       18,213    181,663
operating activities

Investing activities
Inflows
Proceeds from disposal of        1,812                        2,023      4,614
property, plant and
equipment
Government grants received          14                            -         13
Disposal of subsidiaries        14,376                            -    (1,285)
Interest received               15,287                       13,872     27,155
                                31,489                       15,895     30,497
Outflows
Purchase of property, plant   (35,154)                     (27,971)   (70,229)
and equipment
Acquisition of subsidiaries   (82,631)                     (58,696)  (160,076)
Deferred and contingent       (12,939)                      (6,331)    (8,063)
acquisition consideration
paid
                             (130,724)                     (92,998)  (238,368)
Net cash flows from           (99,235)                     (77,103)  (207,871)
investing activities
Financing activities
Inflows
Re-issue of treasury shares        488                          931      2,372
Increase in finance lease          510                            -          -
liabilities
                                   998                          931      2,372
Outflows
Repayment of                         -                      (5,558)    (6,091)
interest-bearing loans and
borrowings
Repayment of finance lease       (160)                        (319)      (397)
liabilities
Dividends paid to owners of   (42,157)                     (40,061)   (62,964)
the Parent
Dividends paid to                (245)                        (196)      (196)
non-controlling interests
                              (42,562)                     (46,134)   (69,648)
Net cash flows from           (41,564)                     (45,203)   (67,276)
financing activities
Change in cash and cash      (118,295)                    (104,093)   (93,484)
equivalents
Translation adjustment          20,867                        7,741     27,435
Cash and cash equivalents      600,079                      666,128    666,128
at beginning of period
Cash and cash equivalents      502,651                      569,776    600,079
at end of period
Cash and cash equivalents              The story has been
consists of:                             truncated,
[TRUNCATED]