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D&L exec eyes 2022 income to exceed record

By Joann Villanueva

November 8, 2022, 7:19 pm

<p><strong>SOLID GROWTH</strong>. D&L Industries president and chief executive officer Alvin Lao is optimistic of exceeding their 2018 record-high net income in 2022 following the robust performance in the first nine months this year. As of end-September 2022, the company registered PHP2.5 billion net income, almost near the PHP2.6 billion it made in 2021. <em>(PNA file photo)</em></p>

SOLID GROWTH. D&L Industries president and chief executive officer Alvin Lao is optimistic of exceeding their 2018 record-high net income in 2022 following the robust performance in the first nine months this year. As of end-September 2022, the company registered PHP2.5 billion net income, almost near the PHP2.6 billion it made in 2021. (PNA file photo)

MANILA – Food ingredients and plastics manufacturer D&L Industries has registered a 17-percent year-on-year growth in net income as of end-September 2022 to PHP2.5 billion, making its top executive optimistic of surpassing its pre-pandemic 2018 feat.

In a virtual briefing on Tuesday, D&L Industries president and chief executive officer (CEO) Alvin Lao said net income in the first three quarters this year is almost near the PHP2.6 billion net recorded in 2021.

“Fourth quarter looks strong so there’s a chance, at least for us, that we will, for the year, exceed our record, which was in 2018,” he said.

The company recorded PHP3.2 billion net income in 2018.

Lao traced the “relatively good” performance in the first nine months this year to continued reopening of the economy.

He said people remain cautious but are now more open to go out despite the threat of so many variants of the coronavirus disease 2019 (Covid-19).

Lao said the company’s fourth quarter performance “can only be good”, noting that it was “quite miserable” same period last year because of the movement restrictions.

For 2023, he said the economy has bright prospects due in part to the government’s statement that lockdowns will not be imposed on a wide scale.

Lao said that while some people still get infected by the virus, the impact is not as worrisome as before since majority of the population has been vaccinated.

He said economic prospects both in the domestic and the global economy seem bright, thus his optimism for the continued positive outlook for the company.

For the third quarter alone, D&L registered PHP910 million net income, its highest quarterly income to date, and up 18 percent compared to the same period last year.

Lao attributed this to the continued reopening of the economy and the expansion of exports.

“The robust earnings also demonstrate D&L’s ability to weather various macroeconomic conditions given its diversified businesses, the essential nature of the products it manufactures, and its ability to adjust its selling prices regularly,” he said.

Lao said operations of their Batangas plant starting next year is expected to further boost their capacity and their net income.

“This will be instrumental in enabling our next leg of growth by helping to expand our global footprint and further advance our R and D (research and development) and manufacturing capabilities,” he said.

The company has spent around PHP8.3 billion for the Batangas plant as of end-September this year while estimated capital expenditure for this is around PHP10.2 billion.

The company’s exports revenues, which accounted for 33 percent of the total in the first nine months this year, rose by 60 percent year-on-year.

Among the products, it exports are coconut and palm oils. (PNA)

 

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