D&L Industries posts P663-M recurring income
D&L INDUSTRIES on Tuesday said its recurring income rose 15% in the first quarter, boosted by continued domestic demand and a surge in export sales.
In a statement, the listed food and input manufacturer said it booked P663 million in recurring income for the January to March period.
Total revenues soared 35% year on year to P6.3 billion, as export sales soared 73% during the period. Exports sales’ share in total sales stood at 24% as of end March, from 18% in 2016.
D&L’s export of food products started to pick up during the end of last year as it started its supply deal with Ventura Foods. The company said the food ingredients segment is now the biggest contributor to exports at 44%, with its export sales more than quadrupling in the first quarter. In 2016, the segment contributed 19% to total export sales.
“Our company continues to see growth across all segments... The strong performance of our export business shows that our commitment to R&D and innovation is being appreciated overseas. Looking forward, we will continue to look for more ways to expand internationally to complement the growth in our domestic business,” D&L President and Chief Executive Officer Alvin D. Lao was quoted as saying in a statement.
D&L’s food ingredients segment saw a 56% growth in revenues to P3.6 billion.
“This was mainly fuelled by the strong growth in refined vegetable oils (commodity) and specialty fats and oils revenues which were up 95% year on year and 33% year on year, respectively,” the company said.
The oleochemicals group’s revenues jumped 17% to P1.9 billion, as the higher margin “Other Specialty Chemicals” segment’s revenues and volume grew by 30% and 22%, respectively, after years of decline.
Specialty plastics generated 5% higher revenues to P683 million, as the firm hiked selling prices due to higher prices of raw materials.
The aerosol business’ net income grew by 73%, but D&L did not provide exact figures.
In a text message, Mr. Lao said the company is looking at the aerosol and food exports business to be their main drivers of growth in 2017.
Asked on plans for expansion, Mr. Lao said they hope to discuss adding capacity to its plants by the end of the year.
The company, along with its subsidiaries, currently runs seven plants with a total capacity of 200,000 tons per year.
“We’re still in the planning stages for expansion. We can discuss more details maybe in the second half of 2017,” Mr. Lao said.
The company is following a guidance of 15-19% growth for 2017, earlier saying that it will bank on the growth of the Philippine economy to sustain growth.
“We’ll be happy with double-digit growth in net income for this year,” Mr. Lao said.
Shares in D&L added 22 centavos or 1.75% to close at P12.80 each on Tuesday. -- Arra B. Francia