‘For now, we are sticking to double-digit growth. If anything, it seems we have a higher chance of exceeding rather than going below that income target’ — Alvin D. Lao, President and CEO, D&L industries Inc.
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Listed specialty food ingredients and oleochemicals producer D&L Industries Inc. is eyeing a stronger second half and a possible surpassing of its full-year 2025 profit target as exports surge and economic tailwinds build.
“For now, we are sticking to double-digit growth. If anything, it seems we have a higher chance of exceeding rather than going below that income target,” D&L president and CEO Alvin D. Lao told reporters during a media briefing on Tuesday.
Six percent growth
From January to June, the company posted a six percent growth in recurring net income to P1.4 billion from P1.32-billion a year ago, with second quarter earnings up two percent to P714-million despite record-high coconut oil prices.
“If we just did the same net income in the second half versus the first half, we’ll be well above the 10 percent gross net income. It’ll be 19 percent. So, we’ll see,” Lao said.
For the remainder of the year, Lao said more stable and potentially lower coconut oil prices could support stronger results.
Batangas plant
Meanwhile, the company’s Batangas plant, now profitable for three consecutive quarters, earned P597 million in the first half of the year or over three times last year’s level, while exports rose 18 percent to P7.4-billion.
Exports now account for 28 percent of revenues and 38 percent of gross profit, with management eyeing a 50 percent revenue share over the medium term.
