MANILA -- Chemical and food ingredient manufacturer D&L Industries, Inc. (D&L) is on track to grow its net income by at least 10 percent or about PHP3.2 billion this year, due mainly to the strong demand for its high-margin specialty products (HMSP).
“Since first nine months we had 13-percent growth in net income, I say we are on track to hit the target (for the year). Mukhang kaya naman (it looks like achievable),” DNL President Alvin Lao said in a press briefing on Friday.
Lao said its net income reached PHP2.40 billion in January to September from PHP2.12 billion during the same period last year.
The company’s profit also rose 13 percent to PHP874 million in July to September alone from PHP771 million last year.
Lao noted that the HSMP segment accounted for 63 percent of overall revenues in the first three quarters of the year against 58 percent in full year 2017.
“The growth in the high margin side of the business is a reflection of our investments in R&D (research and development) which allow us to increase our market penetration and to develop more complex and customized products for our customers,” the company said in a report.
Lao said the remaining 37 percent of revenues was accounted for by the commodity business that saw its margins recover this year.
He added that export revenues contribution stood at 23 percent in nine months from 21 percent recorded in first half of the year.
DNL said food ingredients segment regained its position as the biggest export revenue contributor after its export sales increased by 65 percent in third quarter of the year.
Food ingredients contributed 36 percent to total export sales, followed by oleochemicals, which accounted for 33 percent, it added. (PNA)
