D&L expects 10% growth in net income this year

MANILA, Philippines — D&L Industries, the listed manufacturer of specialty foods ingredients, expects to post a net income growth of 10 percent this year, hopeful the business environment has recovered from a lackluster first half and that its partnerships continue to translate to good business for the company.

D&L president and chief executive officer Alvin Lao said the company’s recurring net income reached P2.12 billion, or earnings per share of P0.30, in the first nine months, 10 percent higher than last year.

In the third quarter alone, earnings and volume growth started to pick up following lackluster growth in the second quarter.

Third quarter net income increased 15 percent to P771 million.

“This quarter showed us returning to normal growth,” Lao said.

He said the flattish growth in the second quarter was a temporary effect of the high earnings base last year which was boosted by election-related spending.

“Moving forward, we continue to see robust growth across all our segments. This will be supported by the still vibrant domestic economy, strong growth in our export sales, and our continued investments in research and development,” he said.

Lao said export sales have grown 74 percent during the nine-month period as a result of the company’s partnerships with Ventura and Bunge.

“We’re a family business, but there’s really a lot of help we can benefit from partnerships,” he said.

The contribution of exports to total sales now stands at 25 percent from just 18 percent in full year 2016, representing a record high for the company.

With the company’s partnerships with Ventura and Bunge maintaining pace, the food ingredients segment is now the biggest contributor to exports.

The segment contributed 45 percent to total export sales compared with just 19 percent in full year 2016.

D&L Industries is a Filipino company engaged in product customization and specialization for the food, chemicals, plastics, and aerosol industries. The company’s principal business activities include manufacturing of customized food ingredients, specialty raw materials for plastics, and oleochemicals for personal and home care use.

At present, D&L has the largest market share in each of the industries it serves, as well as longstanding customer relationships with the Philippines’ leading consumer and chemical companies. It was listed on the Philippine Stock Exchange in December 2012.