D&L Industries Inc., a listed company engaged in product customization and specialization for the food, plastics, and aerosol industries, said net income in the first nine months of the year jumped 19 percent to P1.93 billion on the back of higher commodity prices and sales volume.
Minus the one-time costs on taxes and filings related to the increase in the authorized capitalization in June 2015, recurring net income grew 16 percent,
The 19-percent income rise in the first nine months of the year is on track with the company’s growth target of between 15 percent and 19 percent for 2016.
DNL said in a disclosure to the stock exchange revenues in the first three quarters of the year rose 10 percent to P16 billion, driven by the broad-based increase in sales volume and higher prices of palm oil and coconut oil in the third quarter.
High margin specialties accounted for 61 percent of revenues, bringing the overall gross profit margin to 18.7 percent
“The second quarter of 2016 was particularly strong, owing to the election spending and timing of the Easter holiday. Going into the second half of the year, all businesses are operating on solid ground and contributing to earnings growth,” DNL said.
Net profit in the third quarter increased 14 percent to P671 million, while revenues rose 14 percent to P5.66 billion.
The company since 2012 has been investing heavily on research and development as it continues to focus on key opportunity areas in specialties in food ingredients, chemicals, plastics and aerosols.
The company has been paying down debt, resulting in lower borrowings in the third quarter.
Meanwhile, DNL returned P1.43 billion to shareholders in dividends during the period, bringing the total dividend payout to P3.22 billion since its listing in 2012.
Net debt as of end September 30, 2016 stood at P2.45 billion.
