MANILA -- Chemicals and food ingredient manufacturer D&L Industries, Inc. targets to sustain double-digit profit growth this year driven by expectations of high demand amid robust election spending, as it also ramps up its exports business.
The firm booked a 10-percent rise in net income to PHP3.2 billion in 2018 from PHP2.9 billion the previous year.
In a press briefing on Tuesday, D&L president Alvin Lao said it will continue to invest in research and development (R&D) to produce higher margin customized products for both food and non-food businesses.
Lao said high margin specialty products (HMSP) accounted for 63 percent of total revenues in 2018 from 58 percent the previous year.
He noted it aims to further grow both margins and market share by continuing to develop specialized products in accordance with specific customer needs.
“There is usually an increase in activity during an election year so we are gearing for that,” he said. “It’s not presidential elections but still, that’s a lot of money being spent by the government and by the candidates. So yes, our food business will be the biggest beneficiary. So it will likely be experiencing the fastest growth just because of the elections this year.”
Lao also bared it is ramping its exports business and plans to send more sales and marketing teams overseas to promote its products.
Exports contributed 24 percent of its total revenues in 2018.
The food ingredients segment remains the largest contributor to group exports, accounting for 39 percent of total export sales. This was followed by specialty plastics at 31 percent, and specialty oleochemicals at 30 percent.
Lao further said they will continue to work towards the firm’s target of having export sales account for 50 percent of total sales. (PNA)
