D&L Industries Inc., a food ingredients and plastics manufacturer, is on track to attaining a net income of P3.1 billion this year on the back of sustained strong demand from domestic and overseas markets, a top executive said Wednesday.
D&L president and chief executive Alvin Lao said in a news briefing demand would likely remain strong in the second half despite the recent spike in COVID-19 cases in the country and higher inflation rate.
The company reported a record first-half net income of P1.6 billion, up 17 percent year-on-year. Net income climbed by 22 percent year-on-year in the second quarter to P851 million.
DNL said the better-than-expected earnings were driven by the continued economic reopening of businesses which was felt in all segments.
“Our record first-half 2022 results demonstrate that despite various global macroeconomic headwinds, our company is benefiting from renewed business momentum amidst economic reopening and pent up demand from the past two years,” Lao said.
“Barring any unforeseen event, we will likely at least match our record full-year income booked in 2018,” he said.
Revenues from exports climbed 69 percent in the first six months to P7.7 billion from P4.5 billion in the same period last year, boosted by coconut-based products.
The export business now accounts for 34 percent of the group’s total revenues.
Lao said with the upcoming completion of a new manufacturing plant in Batangas in January 2023, the export business would account for at least 50 percent of revenues over the long term.
The P10.2-billion facility will cater to D&L’s existing and new clients in the food and oleochemical segments.
“D&L’s Batangas expansion will be instrumental to its future growth, as this facility will enable the company to develop more high value-added coconut-based products and penetrate new international markets,” the company said.