Food ingredients and plastics producer D&L Industries Inc. expects net income to hit anywhere from P900 million to P1 billion in the second half, as overall businesses started to improve with the easing of quarantine restrictions.
D&L president Alvin Lao said in virtual press briefing the company saw steep recovery in the months of May, June and July on pent-up demand and as the government eased border restrictions.
Lao said that despite the recent move by the government to place Metro Manila back to modified enhanced community quarantine in August, businesses would continue to recover after adapting to the new business environment.
“I don’t think things will be as bad anymore in the second half versus the first half of the year,” Lao said.
D&L reported a net income of P802 million in the first half, down 43 percent from P1.4 billion in the same period last year.
The company said net income in the second quarter fell 57 percent to P287 million from P665 million a year ago.
Lao said that while the domestic business faced adversities on various fronts, the export business continued to show resilient growth.
He said that export sales grew by 41 percent in the second quarter from a year earlier, bringing first-half sales growth to 25 percent.
Coconut-based products under food and oleochemicals were the main drivers for the robust export growth.
“Coconut oil continues to gain traction in the global market due to its perceived natural antiviral, antibacterial and antifungal properties. The company sees continued strong coconut oil exports, which should offset some of the weakness in the domestic market in the near term,” Lao said.
D&L said it remained committed to its Batangas expansion as this would mainly cater to the growing export business in the food and oleochemicals segments.
The Batangas expansion is expected to be instrumental to future growth as the company plans to develop more high value-added coconut-based products and penetrate other international markets.
The completion and start of operation of the facility was reset to end-2021 from the original target of middle of next year because of the delays associated with the community quarantine.