Profitable plant pushes up D&L earnings
In a stock exchange report on Tuesday, the company said net income in the first six months improved moderately by 6 percent to P1.32 billion, from P1.24 billion last year.
Daily TribuneIn a stock exchange report on Tuesday, the company said net income in the first six months improved moderately by 6 percent to P1.32 billion, from P1.24 billion last year.
Despite macroeconomic headwinds, listed chemicals and food ingredients manufacturer D&L Industries Inc. still saw its first-half earnings gain momentum as sales volumes improved.
In a stock exchange report on Tuesday, the company said net income in the first six months improved moderately by 6 percent to P1.32 billion, from P1.24 billion last year.
D&L President & CEO Alvin Lao attributed the profits gain to its multi-billion peso Batangas manufacturing plant, which turned profitable during the second quarter.
“The second quarter of this year marks the turning point in our Batangas operations as it booked a quarterly profit for the first time since we started commercial operations in July 2023.
As we further ramp up operations and onboard new customers, we see a gradually increasing earnings contribution from this new plant over time,” Lao said.
For the High Margin Specialty Products (HMSP) segment alone, which is the key earnings driver of the company, volumes were up 33 percent during the first semester. It represented the fourth consecutive quarter in which this segment posted higher volume growth.
The Batangas plant's expanded capacity, primarily focused on producing higher value-added products, has significantly contributed to the growth of the HMSP segment.
