Food and plastics ingredients manufacturer D&L Industries Inc. said it is confident of hitting or exceeding the pre-pandemic net income of P2.62 billion as all businesses recover from the effects of the pandemic this year.
D&L president and chief executive Alvin Lao said in a press briefing second-quarter net income surged 134 percent to P671 million from the same period last year. This boosted first-half net income to P1.395 billion, a 74 percent jump year-on-year.
“Assuming that the income for the first half holds steady for the remainder of the year, we are set to reach our 2019 income level. Moreover, we see emerging positive catalysts in the horizon such as the onset of the Christmas season, an additional spending boost coming from the 2022 election campaigns, and progress on the country’s vaccination efforts that can provide upside surprises,” Lao said.
“Overall, we remain optimistic and excited about the future prospects of our business, especially with our Batangas plant coming online in the next couple of quarters,” Lao said.
Lao said he was hoping that the declaration of stricter quarantine status this month would have a minimal impact on overall business as observed in the second quarter when the government re-imposed stricter quarantine restrictions to curb the spread of COVID-19.
“We find ourselves, as well as many of our customers, in a much better position operationally to navigate the current situation with minimal business disruption,” Lao said.
All of the company’s business segments recovered in the first semester, with export sales registering 70-percent increase on strong demand for coconut-based products.
The food ingredients business also posted a 141-percent increase in first-half net income to P457 million as many food companies are now better-equipped to service customers on a takeout or delivery basis.
Lao said that over the near to medium-term, the food ingredients business is expected to continue to recover as it stands to benefit from higher consumer spending during the Christmas period and the upcoming election.