MANILA – Food ingredients and plastics manufacturer D&L Industries expects sustained strong earnings results in the second half of the year, as the government’s shift away from a lockdown strategy bodes well for continued economic growth and business optimism.
“Assuming there will be no more lockdowns, no new (coronavirus) variant causing severe symptoms, it is something we are confident about that the third quarter, fourth quarter or the second half should be strong again,” said D&L president and chief executive officer Alvin Lao in a virtual press briefing on Wednesday.
Lao is optimistic about quarterly earnings growth as the economy is growing and most coronavirus disease 2019 (Covid-19) cases are mild even as cases are on the rise again.
D&L Industries’ earnings in January to June this year increased 17 percent year-on-year to PHP1.6 billion, above pre-coronavirus disease 2019 (Covid-19) income levels booked in the first half of 2019 and 2018.
Its first six months earnings represent the highest first half income level in the company’s history despite the Omicron surge in January and sharp increase in commodity prices. This was mainly driven by the continued economic reopening which was felt in all of its segments.
With the second quarter being the first full quarter with alert level 1 in place, D&L’s earnings recovered sharply to PHP851 million, up 22 percent year-on-year and well above pre-Covid income levels.
“So we are on track to at least if not exceed our pre-Covid high which is in 2018,” Lao said.
Meanwhile, Lao said its expansion facility situated on a 26-hectare property in Batangas province is set to start commercial operations this January.
“Both existing and new clients we are communicating that this new plant is going to be up and running,” he said, adding the new facility aims to serve clients overseas with the new capacity. (PNA)