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D&L posts record P3.3B net income in 2022

Lao family-led chemicals and food ingredients manufacturer D&L Industries Inc. saw its bottom line hit a new record high last year, demonstrating the company’s full recovery from the COVID-19 pandemic.

In a virtual briefing on Wednesday, D&L president and CEO Alvin Lao said the company posted a net income of P3.3 billion, up 26% year-on-year.

Last year’s bottom line also surpassed the record earnings of P3.2 billion seen in 2018.
In a disclosure to the Philippine Stock Exchange, D&L said its 2022 results outperformed expectations and were mainly driven by strong consumer spending amidst wider economic reopening and the company’s exports undergoing resilient growth.

The company said its three biggest business segments—food ingredients, oleochemicals and other specialty chemicals, and specialty plastics—all booked positive earnings growth last year.

D&L added that it hit record income for the period despite a confluence of factors including volatile raw material prices, higher inflation and interest rates, a weak peso, and an Omicron surge early in the year.

The company said better-than-expected earnings were mainly driven by the continued reopening of the Philippine economy and stronger company exports.

“Just when we thought that we [were] 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,” said Lao.

“While risk remains in the form of elevated inflation, the threat of a US recession, and global banking turmoil, we are optimistic and focused on our long-term structural growth story. We look forward to the commercial operations of our Batangas plant by [the middle of this year],” he added.
“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.” —VBL, GMA Integrated News