D&L hopes return to pre-pandemic numbers this year

MANILA, Philippines — D&L Industries, the listed chemicals and food ingredients manufacturer, said the company may return to pre-COVID-19 numbers this year if recovery holds steady in the succeeding quarters.

“It’s been a year into the pandemic and we find ourselves back into another round of enhanced community quarantine (ECQ) for two weeks and modified enhanced community quarantine (MECQ) after. While the business environment continues to be less than ideal, we also find ourselves, as well as many of our customers, in a much better position operationally to navigate the current situation with minimal business disruption,” D&L president and CEO Alvin Lao said yesterday.

D&L Industries’ recurring income reached P2.6 billion in 2019 and P2 billion in 2020.

In a briefing yesterday, Lao said D&L Industries’ recovery continued in the first quarter with earnings growing 35 percent year-on-year and nine percent quarter-on-quarter to P695 million.

All segments posted significant recovery with consolidated income tracking ahead of full year 2019 income, albeit still slightly behind full year 2018 income. Earnings before interest and taxes were higher by 22 percent to P879 million.

“With the government’s stance to protect public health and with the gradual rolling out of vaccines, we believe that the same trend would likely be observed in the succeeding quarters,” Lao said.

Moving forward, Lao said the medium- to long-term business prospects are still intact.

“Our products generally serve basic industries,” he said.

Export sales likewise continued their positive momentum in the first quarter, jumping 84 percent year-on-year.

Export contribution to total revenues reached a record high of 34 percent.

Lao said D&L remains committed to its Batangas expansion and construction is in full swing.

The company has so far spent about P4.5 billion for the project.

“The remaining capex to be spent this year and in the early months of 2022 stands at about P3.5 billion. The company made an announcement earlier this year that it plans to do a maiden bond offering to fund the remaining capex for expansion,” Lao said.