D&L doubles quarter-on-quarter profit in July-Sept. period

Chemicals and food ingredients manufacturer D&L Industries Inc. saw a strong recovery in the third quarter as the economy gradually reopened during the period allowing the company to capitalize on relevant product offerings. 

In a disclosure to the Philippine Stock Exchange, D&L reported a net income of P573 million in the July to September period, up 99% from P287 million recorded in the second quarter of the year.

“The recovery in the third quarter confirms that we’ve survived the worst of this pandemic. Our income for the third quarter doubled from the income recorded in the second quarter, and even managed to surpass our first quarter income which was not fully impacted by the pandemic yet,” said D&L president and CEO Alvin Lao.

On a year-on-year basis, however, the company’s earnings is still lower by 7% from P617 million in the same period last year.

Year-to-date, profits stood at P1.374 billion, down 32% from P2.030 billion a year earlier.

“We believe that the current awareness on health, safety, and sanitation which benefited certain business segments are here to stay beyond the pandemic. As such, we will continue to capitalize on these trends while at the same time reinvent and further build resilience in business segments where there are clear shifts in demand, in order to make these businesses more relevant,” Lao said.

“With the gradual easing of restrictions and economic reopening, all the segments of the company witnessed a meaningful bounce in volume on a quarter-on-quarter basis,” he added.

D&L’s four business segments — Chemrez, Specialty Plastics and Consumer products ODM (previously referred to as Aerosols) — which, combined, account for 75% of total earnings, are already operating either close to or above pre-COVID levels, according to the company.

The company’s export sales continued positive momentum in the third quarter as it jumped 58%, bringing nine-month growth to 37%.

Export’s contribution to total revenues in the third quarter posted again another record high of 32%. This brings the nine-month export contribution to 28% compared to just 20% over the same period last year.

D&L said it remains committed to its Batangas expansion which is deemed to come at an “opportune time.”

“Construction is currently in full swing with capex spent as of nine months of 2020 amounting to P1.7 billion, already exceeding fiscal year 2019 capex of P1.5 billion,” Lao said. —Ted Cordero/KG, GMA News