MANILA, Philippines — D&L Industries Inc., the listed specialty foods ingredients, expects its business to recovery, with earnings likely to exceed P1 billion in the second half.
D&L president Alvin Lao said this is better than earlier expectations of P900 million to P1 billion.
Most of the company’s customers are now better prepared to operate following the more stringent lockdowns in the past months, Lao said during a virtual media briefing last week.
Thus, Lao said “indications are that the second half would be better than what we thought.”
In all, he said the third quarter is better than the second quarter, but it would be difficult to gauge the fourth quarter because customers may decide not to host Christmas parties because of the COVID-19 pandemic.
During the modified enhanced community quarantine, D&L’s customers continued generating revenues by tapping online sales and delivery channels, Lao said.
In all, D&L’s oleo-chemicals business is benefiting from increased mobility, which means more biodiesel sales, while its specialty plastics is benefiting from the reopening of the global economy.
This, in turn boosting sales to export-oriented automotive companies, Lao said.
Moving forward, Lao said the company is more optimistic about 2021 as it is generally expected that economies worldwide would continue to recover next year.
With its strong balance sheet and the essential nature of its various businesses, D&L believes the company is fundamentally equipped to weather the current crisis despite the unprecedented disruptions brought by the pandemic.
The company remained profitable even during the peak of the lockdown in April when Metro Manila was under strict lockdown, and did not have any month in the second quarter where net income was negative for any of its main business categories, it said in a separate statement.
Expressing its confidence on the economy, D&L is not reducing its capital expenditures and will continue to push through with the expansion of its manufacturing capacity with the construction of a new plant in Batangas, slated for completion by the end of next year.