D&L surpasses pre-pandemic earnings

Despite the Omicron surge in January and the sharp increase in commodity prices, listed chemicals and food ingredients manufacturer D&L Industries Inc. managed to surpass its pre-pandemic earnings during the first nine months of the year.

The company booked a net income of P2.5 billion from January to September, 17 percent higher than the bottom line figure reported in the same period a year ago.

Almost at par with the P2.6 billion net income for the full-year 2021, the company's net income represented the highest nine-months earnings level in its history.

During the third quarter alone, D&L booked a record quarterly net income of P910 million, up 18 percent and well above the pre-pandemic level.

At a press conference on Tuesday, D&L President and CEO Alvin Lao attributed the "better than expected" performance to the renewed business momentum amid economic reopening and pent-up demand from the last two years.

"With the strong earnings momentum so far this year and near-term catalysts such as the anticipated holiday-induced spending and the lifting of mask requirements indoors, our earnings are on track to possibly exceed our record net income booked in 2018," Lao said.

The company's export business also continued its positive nine-month momentum, with revenues jumping 60 percent year on year for the period.

Export contribution to total revenues in the first nine months stood at 33 percent, which Lao said demonstrated the company's commitment to diversifying its revenue base by strategically growing its international customer base.

Lao also reiterated the company's commitment to starting the commercial operations of its Batangas facility expansion in January 2023.

Total capital expenditure for the project is expected to reach P10.2 billion from the previous P9.1 billion allotted budget due to updates in its plan. As of end-September, the company has spent around P8.3 billion on the project.

The facility will mainly cater to D&L's growing export businesses in the food and oleochemicals segments. It will augment the capability to manufacture downstream packaging — allowing the company to capture a larger portion of the production chain.