FY21 net income of P2.64 billion, up 31% from FY20 profit of P2.02 billion; this result also bests DNL’s FY19 net income of P2.62 billion by 1%. DNL attributed the performance to increased economic activity and the “robust performance” of its export business.
D&L Industries [DNL 7.85 0.77%] reported record revenues of P30 billion, up P9 billion from 2020, with 33% of that coming from DNL’s export business.
Alvin Lao, DNL’s CEO, said that the future outlook for DNL is going to be helped by the economic improvements that come from post-COVID reopening, but hindered by the global price-spike in commodities that was (and continues to be) worsened by the Russian invasion of Ukraine.
MB BOTTOM-LINE
DNL is a fascinating company, and I always struggle to write about it because I get the impression that whatever I write won’t accurately reflect what the company does, or how unique this company is both in our market and on the exchange.
DNL operates (mostly) in the pre-production layer of manufacturing, by providing value-added components and ingredients to manufacturers.
They’re closer to the source (raw materials) than the end point (consumer), but their service is quite sophisticated, which runs counter-intuitive to the general mental model that says the closer to the raw material a business is, the less sophisticated the operations.
DNL food components help establish food texture, color, smell, and taste.
Their other business units tackle bespoke issues in packaging, colorization, and containerization.
They’re not a household name, but only because whatever DNL products we eat, touch, or experience are themselves just a part of a bigger, larger product that is sold under well-known, public-facing brands.
To riff off the tired old saying, if the growth of Philippine middle-class consumerism is the “gold rush”, then DNL is out there selling shovels and picks in the form of custom ingredients and packing solutions.
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