DCC impacted by tariffs but ‘on track’ towards 2030 ambition
The group aims to sell the rest of its technology business by the end of 2026
DCC Technology, the parent company of Hammer Distribution, formerly Exertis Enterprise, has reported a revenue slowdown in its H1 FY26 results.
Earnings declined 7.1 per cent to £7.4bn, compared with £7.9bn at the same time the year prior.
DCC Technology, the division that includes JAM, Almo, Exertis Enterprise, Exertis Cloud, Connect, Azenn, Amacom, AV DACH, AV Italy, Exertis Nordics and AV Spain, saw its top line fall to £1.36bn, a 2.7 per cent drop from £1.32bn.
Revenue in the UK reached £79.2m, up from £78m the year prior.
The company’s turnover in North America also increased, going from £857.4m to £866.4m, thanks to a good performance in professional AV and audio products.
On the other hand, DCC experienced a sharp drop in France, from £65.4 to £53.9m.
Earnings dipped in the rest of the world, from £354.6 to £319m.
These mixed figures were reportedly due to a weak consumer appeal and the impact of tariffs in lifestyle products.
Tariff uncertainty caused demand to be rescheduled in the first quarter but limited stock availability and tariff-related challenges in the second quarter offset this positive impact, resulting in lower profits overall in the first half.
Gross profit in the segment weakened by 4.8 per cent, landing at £190.1m, from £199.8m the year prior.
DCC Technology’s operating profit went from £35.9m to £33.4m, a 6.9 per cent downturn, partly due to the currency translation from NORAM.
Despite the acquisition of Septon Group in April, the firm intends to let go of its tech unit.
After selling its IT business (Exertis Supplies, Exertis Ireland, Macro EV, Exertis Supply Chain Services, MTR, Hypertec, and Ztorm) to private equity investor AURELIUS in July, DCC intends to reach an agreement for the sale of its remaining tech department by the end of calendar year 2026.
In April, DCC also announced the sale of its healthcare segment o Investindustrial for £1.1bn, as the group wants to focus on its energy d, its “largest and highest returning division.”
DCC Energy operating profit dipped 2.9 per cent in H1 FY26, from £830.1m to £806.3m.
“It has been a period of significant strategic progress,” said Donal Murphy, CEO of DCC.
“We completed the sale of our healthcare business, the sale of our info tech business, and our £100m share buyback programme.
“We expanded our liquid gas activities in Europe, a priority for growth where we have a good pipeline of further development opportunities.
“We continue to expect good profit growth for the full year in line with market expectations, demonstrating our resilient business model.
“We are excited about our growth opportunities as a simpler, stronger DCC Energy. We’re on track to deliver our 2030 ambition.”