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D&L Industries sees gradual recovery as restrictions ease

MANILA – D&L Industries, a manufacturer of specialty food ingredients, plastics, and oleochemicals, expects increased demand for its products starting this month as restrictions due to the pandemic gradually ease in the country, while its export business remains resilient.    
 
In a statement Thursday, D&L president and chief executive officer Alvin Lao said more of the company’s customers are ramping up operations under the general community quarantine (GCQ) starting June 1.
 
Under the new rule, restaurants and fast food chains have been allowed to utilize 30 percent of their dine-in capacity beginning June 15.  
 
Lao said this should translate to better volume for the company’s food ingredients business which saw a significant drop in demand from the hotel/restaurant/caterer (HoReCa) sector during the first few months of the quarantine period. 
 
Metro Manila and nearby provinces shifted from an enhanced community quarantine (ECQ) to a modified enhanced community quarantine (MECQ) last May 15, and subsequently to a GCQ starting this month.
 
Lao also cited the resumption of construction activities and public transportation, albeit on a limited scale, which should help recover some lost volume in the other specialty chemicals and biodiesel segments under Chemrez.
 
“We are optimistic that improvements might be seen in the third quarter, but may still be below pre-Covid levels. A reasonable recovery might be more probable in the fourth quarter as (the) Christmas period in the Philippines sets in as early as September,” he added.
 
Lao said Filipinos’ fondness for gatherings and meeting up with friends and family, pushing demand for its products. 
 
“This should help the country recover faster than most countries. A possible monkey wrench, however, is a second wave that can return us to a stricter quarantine,” he added. 
 
While the domestic business has faced adversities on various fronts, Lao said the company’s export business remained relatively resilient in the first quarter, particularly the export of coconut-based products under food and oleochemicals due to its perceived natural antiviral and antibacterial properties. 
 
“The company sees continued strong coconut oil exports, which should offset some of the weakness in the domestic market in the near term. The company plans to capitalize on this trend as it develops more products and penetrates more markets globally,” he added. (PR)
 
 

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