D&L posts record P3.3 billion profit in 2022

MANILA, Philippines — D&L Industries recorded its highest ever net income last year at P3.3 billion, demonstrating a full recovery from the COVID-19 pandemic.

The company’s 2022 income of P3.3 billion reflected an increase of 26 percent from last year and it also exceeds the company’s previous record of net income achieved in 2018.

In the fourth quarter alone, earnings rose by 62 percent to P777 million.

In a virtual press briefing yesterday, D&L president and CEO Alvin Lao said the results were mainly driven by strong consumer spending amid wider economic reopening and the company’s resilient exports industry.

The three biggest business segments of the company – food ingredients, oleochemicals and other specialty chemicals, and specialty plastics – all booked positive earnings growth for the year which were either at record highs or slightly below, Lao said.

“Just when we thought that we are at the tail end of the challenges brought about by the pandemic, 2022 presented a fresh set of challenges, which were mostly on the macroeconomic front. Nonetheless, our record earnings this year demonstrated the resilience that we have built over the years through the various crises that we have gone through,” Lao said.

However, he said risks remain in the form of elevated inflation, threat of a US recession, and a global banking turmoil.

Lao said the company is on track with its Batangas expansion, which is set to start commercial operations this year.

“We look forward to the commercial operations of our Batangas plant by mid this year. This plant will be transformational for us from a sustainable growth perspective. It will add the capabilities that will allow us to increase our relevance in the overall production chain and service new and bigger customers globally,” Lao said.

D&L’s export business is proving to be resilient with Chemrez’s earnings growing by 47 percent last year.

“The growth was largely driven by the higher export market penetration and higher demand for sustainable, organic, and natural coconut oil-based raw materials used in various health, personal, and home care products,” the company said.

D&L expects its foothold in coconut oil-based exports to strengthen especially as the company builds its capabilities to serve a wider array of international customers.