D&L Industries eyes double-digit profit growth in 2018

By Leslie Gatpolintan

March 6, 2018, 9:18 pm

MANILA -- D&L Industries Inc., the country’s largest customized food ingredients and oleochemicals firm, expects to sustain double-digit growth in profit this year to at least PHP3.2 billion.

D&L President and Chief Executive Officer Alvin Lao said growth would be boosted by the expansion of both domestic sales and exports, particularly that of high margin specialty products.

“There are a lot of reasons why growth would be good --there is growing exports, margins are growing; the domestic environment, the optimism in the country, the level  of investments seem strong,” Lao said in a press briefing.

He expects increased sales as the company produces more new products and enters new exports markets in the Asia Pacific region, such as China, Hong Kong, Japan and Indonesia.

“We are actually doing a lot of test shipments already. So whether it is on the food side or on oleochemicals or even in the plastics side, we are always talking to more customers that we want to sell to,” he added.    

D&L Industries’ recurring net income reached PHP2.9 billion in 2017, up 10.6 percent from PHP2.6 billion the previous year.  

Food ingredients segment contributed 36 percent to net income; oleochemicals and other specialty chemicals, 32 percent; specialty plastics, 23 percent; aerosols, 6 percent; and D&L parent, 3 percent.

Export earnings, comprising for 25 percent of total business, surged 68 percent from PHP4.07 billion to PHP6.83 billion.

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 2016.

“We see that our full year results better reflect the long-term growth prospects of the business. Going forward, we will continue to exercise discipline and excellence in R&D (research and development) as we continue to target opportunities in the growing Philippine economy, as well as in our rapidly expanding export segments,” said Lao. (PNA)