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Tuesday, March 19, 2024

D&L Industries sees 2019 profit increasing 10%

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D&L Industries Inc. said Tuesday it expects net income to grow 10 percent this year on the sustained growth of its exports business and positive performance of its food business.

D&L president Alvin Lao said in a news briefing the company continued to promote its export business which accounted for 24 percent of total revenues.

The group expects its food business, affected by higher inflation rate in 2018, to be boosted by election-related spending.

D&L reported a net income of P3.2 billion in 2018, or 10 percent higher than P2.9 billion in 2017.

Gross profit margin reached a record high of 22 percent in the fourth quarter of 2018, bringing the full year blended margin at 19.1 percent.

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“The margin expansion is a result of the company’s increased focus on R&D and demonstrates the company’s ability to effectively pass on price changes to customers. The company aims to further grow both margins and market share, by continuing to develop specialized products in accordance with specific customer needs,” Lao said.

The group’s high-margin specialty products accounted for 63 percent of total revenues in 2018, up from 58 percent from the 2017 level.

D&L plans to spend P2.6 billion for 2019 capital expenditures and start construction of a facility in Tanauan, Batangas.

The company is set to build two new plants – one for food ingredients under D&L Premium Foods Corp. and an integrated facility to manufacture oleochemicals and downstream packaging under Natura Aeropack Corp.

The expansion of its food ingredients facility will address the growing export business for food.

The company plans to finance the project through a combination of debt (70 percent) and internally generated cash (30 percent).

It is expected to generate about 700 new jobs, with construction and commissioning slated for completion by 2021.

D&L currently has six manufacturing facilities, including five in Metro Manila and one in Laguna.

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