Food ingredients, oleochemicals lift DNL profit by 13%

By Leslie D. Venzon

MANILA, Oct. 27 (PNA) — Listed food and plastic input manufacturer D& L Industries (DNL) is optimistic at hitting a net income target of Php 2.36 billion this year, after first three quarters figure surged by 13 percent on the back of higher volume growth and margins of specialty food ingredients and oleochemicals.

Its profit reached Php 1.62 billion in January to September this year, from Php 1.48 billion during the same period last year.

Revenues increased slightly 2 percent to Php14.55 billion from Php 14.80 billion.

For the third quarter alone, net income expanded 9 percent to Php 587 million from Php 540 million.

“With the government’s increased spending on infrastructure and election-related spending, we are optimistic about fourth-quarter growth. Because of these spending, the economy can perform well; the impact on us is positive,” said D&L chief finance officer Alvin Lao in a press briefing.

High margin specialty products (HMSP) accounted for 61 percent of the group’s overall sales in January to September, while low margin commodities shared 39 percent.

Lao said the 13-percent hike in net income was mainly driven by volume growth in food ingredients, oleochemicals and aerosols.

He said the company was developing more products for local and international markets, upbeat about rosy outlook on both their business prospects and the economy.

“What we see is that the elections will translate to more spending in general. So we are positive about at least for the first half of next year and the Philippine economy,” Lao said.

”Most of the growth is still in the Philippines so our attention is really on the Philippines. The Philippine market is still one of the fastest growing markets in ASEAN, actually second fastest in ASEAN,” he added. (PNA)