MANILA, Philippines — D&L Industries Inc., the country’s leading specialty food ingredients and oleochemicals producer, is closing in on achieving its goal of having exports account for at least 50 percent of total revenues.
D&L president and CEO Alvin Lao said its new Batangas plant puts the company on the right track to reach its goal of having exports eventually account for at least 50 percent of total sales.
“So our target is 50 percent of our revenues eventually coming from exports. Maybe it will take us another two to three years before we get 50 percent. That’s my own estimate,” he said.
In the first quarter, the company’s export income recovered sharply, rising by 39 percent to a record high of 32 percent.
Lao said this is expected to rise to the mid-to-high 30s by the end of the year.
“To date, our Batangas plant has been instrumental in opening up new markets for us as we aspire to become a truly global Filipino manufacturing company,” he said.
As of March, D&L’s wholly owned subsidiaries operating the Batangas facility have both surpassed their first year export commitment with the Philippine Economic Zone Authority.
D&L said the two subsidiaries combined have delivered 230 percent of their export commitment to date.
D&L is expecting its earnings to grow by double digits this year.
“Barring any unforeseen event, we keep our stance and continue to guide for at least double-digit growth in earnings for this year,” Lao said.
During its annual stockholders’ meeting yesterday, D&L declared cash dividends amounting to P1.49 billion consisting of a regular cash dividend of P0.161 per share, plus a special cash dividend of P0.048 per share.
Shareholders of record as of June 19 are entitled to the dividend, with payment to be made within 30 days of the dividend declaration or on July 3.
“Management remains highly committed to its regular dividend policy of a 50 percent payout ratio based on prior year’s net income,” D&L said.