MANILA – Filipino-owned food, chemicals, plastics and consumer product manufacturer D&L Industries has registered record-high earnings in 2022 amid volatilities and challenges in the global economy.
In a virtual briefing on Wednesday, president and chief executive officer (CEO) Alvin Lao said the company recorded PHP3.3 billion net income last year, exceeding the previous record of PHP3.187 billion hit in 2018.
“Just when we thought that we are at the tail-end of the challenges brought about by the pandemic, 2022 presented a fresh set of challenges which were mostly on the macroeconomic front. Nonetheless, our record earnings this year demonstrated the resilience that we have built over the years through the various crises that we have gone through,” he said.
For this year, Lao aims for continued improvement in their earnings after noting that the number of coronavirus disease 2019 (Covid-19) cases have declined, supply chain issues have been addressed, the peso has stabilized and prices of raw materials have done down.
“Ang problem na lang this year might be high interest rates relative to previous years but definitely mukhang this year is much better than last year (The only problem this year might be the high interest rates relative to previous years but definitely, it looks like this year is much better than last year),” he said.
Lao said the listed firm is looking forward to the commercial operation of its manufacturing plant in Tanauan, Batangas around the middle of this year.
But he noted that as in the past, the new plant is not expected to have a high contribution to their productions immediately.
“This plant will be transformational for us from a sustainable growth perspective. It will add the capabilities that will allow us to increase our relevance in the overall production chain and service new and bigger customers globally,” he added.
In the last quarter of 2022, the company registered pre-pandemic levels of growth on high-margin specialty products (HMSP) at 6.4 percentage points and commodity margins by 4.5 percentage points.
Lao said the improvement in HMSP growth in the last quarter of last year is a “welcome development” since its contribution in the first nine months of last year is only lower at around 50 percent compared to the 53 percent from October to December.
He attributed the higher sales of the commodity segment in most parts of last year to the shift to basic raw materials due to supply chain disruptions.
The company’s capital expenditures last year reached around PHP3.497 billion, up from PHP3.179 billion in 2021.
Lao expects spending to be lower this year as construction for the expansion of their manufacturing plant in Batangas is almost done. (PNA)