DCC Healthcare’s vision is to build a substantial healthcare business focused on the sales, marketing and distribution of pharmaceuticals and medical devices and the provision of contract manufacturing and related services for the health and beauty sector. DCC Healthcare seeks to drive continued strong profit growth in tandem with returns on capital well above the DCC Group’s cost of capital.
Sales, marketing and distribution to healthcare providers
DCC Vital has a very strong track record of growth, having more than doubled the scale of its business in profit terms over the last three years. During this time revenues have increased by more than 50% and margins have improved. The improvement in operating margin has been achieved through the streamlining of its activities, improving mix (increasing the proportion of higher value added products and an increasing share of company owned brands), exiting lower margin activities and consolidating back office activities. This growth has been achieved against a backdrop of challenging market conditions in the public healthcare sector in Britain and particularly in Ireland, which reduced organic growth opportunities.
Our ongoing targeted acquisition activity, with strong valuation discipline and integration execution, has resulted in a significant expansion of DCC Vital’s market coverage in Britain and a broader product portfolio, together with strong profit growth and increased returns on capital.
DCC Vital aims to continue this track record of growth through:
- expanding the product portfolio both organically and by acquisition, with a particular focus on own brand/licence products in product categories which can deliver sustainable returns over the longer term;
- leveraging the breadth of our market coverage in Britain, in particular providing a holistic approach to addressing the requirements of each sector within the healthcare market in line with government policies to seek to treat patients in the most appropriate and cost-effective settings; and
- expanding our market reach into Continental Europe, particularly Northern European markets, both organically and by acquisition.
DCC Vital has a strong regulatory capability in the pharma area including product in-licensing, quality control and assurance and pharmacovigilance. This capability, together with strength in product sourcing and the uniformity of European Union product licensing regulations, will open up opportunities for the business to extend its pharma activities into new geographic markets over the coming years. The medical devices market is becoming increasingly polarised between high-tech products in specialist therapy areas and right quality/right price mid and low-tech products. DCC Vital seeks to selectively launch products under its own brands while continuing to attract quality specialist agencies.
Services for health and beauty brand owners
DCC Health & Beauty Solutions has an excellent track record of growth, the vast majority of which has been organically driven. The scale of the business has increased significantly over the last number of years with operating profits more than doubling and revenues increasing by over 65% in the last four years. Today, DCC Health & Beauty Solutions is one of Europe’s leading outsourced service providers to the health and beauty sector.
DCC Health & Beauty Solutions aims to continue this track record of growth through:
- driving continued growth with existing customers by leveraging the strength and depth of our product development and technical resources;
- attracting new customers with our high quality facilities, strong business development capability and highly responsive and flexible customer service;
- enhancing and expanding the service offering, organically and by acquisition, with a particular focus on healthcare creams and liquids and sports nutrition; and
- expanding the geographic footprint beyond our current markets, organically and by acquisition.
Our high quality facilities, together with the strength and depth of our business development, product development and technical resources, has enabled DCC Health & Beauty Solutions to build a reputation for providing a highly responsive and flexible service to our customers and for assisting customers in rapidly bringing new products from marketing concept through to finished products.