D&L Industries Inc., a listed plastic and food input producer, said Tuesday it is on track to hitting record profits in 2022 as consumers were steadfast in spending despite rising costs.
D&L president and chief executive Alvin Lao said in a press briefing this year’s earnings would likely exceed the previous record of P3.2 billion achieved in 2018 after its net income for the first nine months hit a new high.
“While global macro concerns remain, there’s a fundamental growth story within the company that’s proving to be resilient,” Lao said.
Lao said near-term catalysts, such as holiday-induced spending and lifting of mask requirements indoors, could help sustain growth momentum in the fourth quarter.
Nine-month net income increased by 17 percent year-on-year to P2.5 billion, nearly at par with the 2021 full-year income of P2.6 billion.
Lao said the company managed to book record income despite volatile raw material prices, higher inflation and interest rates, a weak peso and an Omicron surge early in the year.
He said the better-than-expected earnings were driven by the continued reopening of the domestic economy and stronger company exports.
D&L booked a record net income of P910 million in the third quarter, up 18 percent year-on-year.
Lao said the company’s export business was proving to be resilient, with Chemrez’s earnings growing by over 50 percent in the first nine months.
The growth was largely driven by the higher export market penetration and higher demand for sustainable, organic and natural coconut oil-based raw materials used in various health, personal and home care products.
“D&L’s robust earnings demonstrate its ability to weather various macroeconomic conditions given its diversified businesses, the essential nature of the products it manufactures, and its ability to adjust its selling prices regularly,” Lao said.
D&L is set to start commercial operations of its new manufacturing plant in Batangas province in 2023.
“This will be instrumental in enabling our next leg of growth by helping to expand our global footprint and further advance our R&D and manufacturing capabilities,” Lao said.