Chemical producer D&L Industries Inc. said Thursday net income in 2014 surged 27 percent to a record P2.03 billion from P1.6 billion in 2013, driven by a double-digit volume growth in food ingredients, oleochemicals and other specialty chemicals.
D&L chief finance officer Alvin Lao said in a news briefing revenues in 2014 also grew 39 percent to P20.52 billion from P16 billion a year ago. Sales from high-margin specialties, which accounted for 59 percent of total sales, grew 22 percent.
The company’s strong financial performance of 2014 was also boosted by the acquisition of the remaining 65 percent of Chemrez Technologies that D&L didn’t own.
D&L added 27 percent to topline and 16 percent to net income, reflecting the significant value created by the transaction.
D&L said net income in the fourth quarter jumped 37 percent to P557 million while sales rose 51 percent to P6.253 billion.
“With the full ownership of Chemrez, D&L is in a better position than ever to capture these opportunities going into 2015,” D&L said.
Lao said for 2015, the P2.4-billion net income target of most investment houses for D&L “is achievable”.
Revenues are expected to go down this year because of expected decline in commodity prices, it said.
Exports as a percentage of revenues is also expected to go up from 18 percent in 2014 while domestic business is expected to remain strong due to robust consumer spending.
D&L is a Filipino company engaged in product customization and specialization for the food, plastics and aerosol industries.
The company’s principal business activities include manufacturing of customized food ingredients, specialty raw materials for plastics and oleochemicals for personal and home care use.