D&L upbeat on 2022 prospects

MANILA, Philippines — D&L Industries, the listed food ingredients and chemicals manufacturer, is optimistic about its prospects for the remainder of the year on the back of increasing mobility and economic activities.

In a press briefing yesterday, D&L president and CEO Alvin Lao said the second quarter is looking to be strong for the economy which, in turn, will benefit the company as well.

He said the company stands to benefit from the gradual return to normalcy as higher economic activity typically translates to better business for the company.

Given the recovery in the domestic economy and the company’s growing export business, D&L’s expansion facility in Batangas, which will be operational by January 2023, will come at an opportune time, Lao said.

The new plant will give D&L additional capacity and upgraded capabilities that will position the company for long-term growth and enable the achievement of strategic priorities.

D&L sees its net income hitting P3.1 billion this year, which is already at par with its 2018 profit by simply annualizing the company’s first quarter earnings.

The company recorded a net profit of P780 million in the first quarter, up 12 percent year-on-year and above pre-COVID income levels.

First quarter earnings represent the highest quarterly income level for the company in three years despite the Omicron surge in January and soaring commodity prices caused by the ongoing conflict between Ukraine and Russia.

D&L announced a regular cash dividend of P0.185 per share, plus a special cash dividend of P0.055 per share, to shareholders of record as of June 21.

Shareholders will receive a total of P0.24 dividend per share, or a dividend yield of 3.6 percent based on June 3’s closing price of P6.75. This year’s dividend amounting to P1.7 billion, or an increase of 26 percent from last year’s P1.4 billion, is equivalent to 65 percent of last year’s recurring income.

Lao said management remains committed to its dividend policy of a 50 percent payout ratio based on prior year’s net income. D&L has also been able to declare special dividends for two years in a row now since it was paused in 2020 due to the uncertainties brought about by the COVID-19 pandemic.