D&L sees better performance in 2020

MANILA, Philippines — D&L Industries Inc., the listed specialty foods ingredients, plastics and oleochemicals firm, sees better performance in 2020.

Recurring income reached P2 billion in the nine- month period or 15 percent lower than last year. In the third quarter alone, net income fell 29 percent to P617 million. Sales declined 18 percent to P16 billion during the nine-month period.

“The company has faced a challenging environment in 2019, brought on by a confluence of external factors,” D&L president and chief operating officer Alvin Lao said in a briefing Tuesday.

At the same time, the company expressed confidence it would be able to recover soon.

“We believe that we are at the bottom of the cycle in terms of net income decline, with 2019 marking the first year, since the IPO, in which D&L may post a decline in full-year net income. Consequently, a further sell-off in the stock presents a limited window of opportunity for shareholders who, like us, seek long-term value.

We’re already seeing signs of our business picking up, especially in the food segment where margins and sales mix are continuing to improve. Our expanded production capacity planned for 2021, with its improved capabilities, will place us in a strong position to increase our value to customers and further expand our export business,” he said.

The company is ramping up its expansion project.

It has so far spent P1.4 billion from capital expenditures during the nine-month period, triple the P456 million spent in the same period last year.

For this year, it expects to spend about P2 billion, mainly for its Batangas expansion.