Annual Report and Accounts 2006 - DCC plc
Annual Report and Accounts 2006 - DCC plc
Annual Report and Accounts 2006 - DCC plc
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
23Performance for the year to 31 March <strong>2006</strong>Change on prior year<strong>2006</strong> 2005 <strong>Report</strong>ed ConstantcurrencyRevenue €276.9m €232.6m +19.0% +19.0%Operating profit €15.5m €12.8m +20.6% +20.9%Operating margin 5.6% 5.5%Return on capital employed- excluding intangible assets 55.2% 57.1%- including intangible assets 18.7% 21.3%<strong>DCC</strong> Food & Beverage achievedexcellent revenue <strong>and</strong> operatingprofit growth in the year, benefitingfrom the acquisition of Bottle Green<strong>and</strong> the full buyout of Allied Foods inthe first half of the prior year <strong>and</strong>from good organic growth.The healthfoods business continuedto achieve good organic revenuegrowth. Investment in the Kelkinhealthfood br<strong>and</strong> <strong>and</strong> new Kelkinproduct development resulted in asmall short-term reduction in itsprofits. The British based winebusiness, which enjoyed stronggrowth in the first half, performedbelow expectation in the second half.Snackfoods, the Irish wine business,the restaurant operations <strong>and</strong> thefrozen <strong>and</strong> chilled business allachieved good growth.<strong>and</strong> the business is well placed totake advantage of the growinghealthfoods market.<strong>DCC</strong> Food & Beverage aims todeliver acquisitions in Irel<strong>and</strong> <strong>and</strong>Britain that will exploit the growingdem<strong>and</strong> for healthy food <strong>and</strong>beverage products <strong>and</strong> will assist thedevelopment of the wine business.<strong>DCC</strong> Food & Beverage provides thecomplete coffee solution - Robt.Roberts' excellent coffee, premiummachinery <strong>and</strong> a top quality service.10.29.49.08.27.66.112.815.54.2 5.097 98 99 00 01 02 03 04 05 06<strong>DCC</strong> Food & Beverage- operating profit (€m)1997 - <strong>2006</strong>Strategy <strong>and</strong> developmentThe Group’s strategy is to develop<strong>DCC</strong> Food & Beverage into a leadingbusiness that satisfies consumer <strong>and</strong>customer needs in the health <strong>and</strong>indulgence sectors <strong>and</strong> delivers anabove average return on capital.This will be achieved by buildingorganically <strong>and</strong> by acquisition.The business continues to increasefocus on br<strong>and</strong>s, building on the goodprogress being made with FrenchConnection (Bottle Green), Robt.Roberts’ speciality teas, Lemon’sconfectionery, Bollinger champagne,Torres wines, KP snacks <strong>and</strong>Vitabiotics, among others. Themarketing investment in the Kelkinbr<strong>and</strong> this year has been significant<strong>DCC</strong> has a strong position inthe wine market in both Irel<strong>and</strong><strong>and</strong> Britain.
Change language