D&L keeps bonds rating stable

Demonstrating its strong financial capabilities, D&L Industries Inc. has maintained its Issue Credit Rating of PRS Aaa, with a Stable Outlook, from Philippine Rating Services Corp. (PhilRatings) for its outstanding bonds.

The company said in a stock report on Monday that the ratings were assigned to its total outstanding fixed-rate bonds amounting to P5 billion.

Obligations rated PRS Aaa are of the highest quality with minimal credit risk, which means that D&L can meet its financial commitments.

PRS Aaa is the highest rating assigned by PhilRatings. Meanwhile, a Stable Outlook is assigned when a rating is likely to be maintained or to remain unchanged in the next year.

In the Gawad Yamang Isip Awards of the Intellectual Property Office of the Philippines, D&L Industries was cited for the inventions category for successfully marketing their creations.

Specialty ingredients

D&L, the country’s top producer of specialty food ingredients and oleochemicals, has a geographically diverse revenue source that caters to domestic and international markets.

Based on the company’s latest financial report, its export sales last year accounted for 27 percent of total sales.

The Lao Family’s D&L intends to expand its export business to at least 50 percent of revenues in the long term. This will be complemented by the commercial operations of its new Batangas Facility, which started in July 2023.

In terms of topline growth, D&L experienced a decline in its revenue in 2023 due to a challenging business environment marked by persistent high inflation. This resulted in a 23 percent decrease in total revenues, reaching P33.5 billion.

Likewise, the company’s net income declined by 30.8 percent, falling to P2.3 billion in 2023 due to additional expenses incurred from its Batangas facility.

As of the end of 2023, the debt-to-equity ratio held steady at 0.8x, indicating maintained conservative debt levels.

The company’s net operating cash flow was ample — primarily utilized for debt repayment, including borrowings and lease obligations.