Connect with us

Hi, what are you looking for?

Economy

D&L Industries sees 8% income growth to P637M

LISTED manufacturing firm D&L Industries, Inc. saw its fourth-quarter income rise by 8% to P637 million as the Philippines gradually eased its lockdown measures towards end-2020.

“What I want to highlight is really the performance in the fourth quarter. You can see that compared to last year’s fourth quarter, net income was up by 8% and [compared] to the third quarter of 2020, net income was up by 11%. [It] looks like [our] net income has almost fully recovered,” D&L  President and Chief Executive Officer Alvin D. Lao said in an online briefing on Wednesday.

In the fourth quarter of 2019, the company’s net income was at P590 million. In the third quarter of 2020, it earned P573 million.

“That’s the big indicator to us that things look like they really started to get better now,” Mr. Lao said.

Sales for the fourth quarter were nearly flat at P5.82 billion while gross profit slowed by 2.4% to P1.14 billion.

The company reported that its non-food segments have already surpassed their performance before the coronavirus disease 2019 (COVID-19) crisis hit.

Chemrez, Specialty Plastics, and its consumer products ODM (original design manufacturer) accounted for 75% of total fourth-quarter earnings.

The company pointed to the easing of local quarantine restrictions that allowed industries such as transportation and construction to resume their operations as the reason behind the spike in demand for biodiesel and other products related to construction.

D&L’s consumer products ODM, previously called the aerosols segment, also performed well. Year on year, the company saw greater demand for products intended for general sanitation and hygiene such as alcohol, sanitizers, and disinfectant sprays.

The company’s specialty plastic products meanwhile attribute its recovery to the greater market demand for “additives and colorants for plastic packaging applications” amid the sudden increase in parcel deliveries amid the pandemic.

More people have also turned to buying their own cars.

“To a certain extent, the pandemic has increased the public’s interest in purchasing vehicles given the possibility of virus exposure when using public transportation,” the company said.

The company’s food segment meanwhile also reported a 7% recovery in the fourth quarter, as quarantine restrictions eased. Although, D&L noted that the segment’s earnings were still 45% lower year-on-year.

For full-year 2020, D&L’s net income decreased by 23% to P2.01 billion from P2.62 billion in 2019.

Annual sales declined by 3% to P21.74 billion from P22.39 billion, while the company’s gross profit posted dropped 15% to P3.99 billion from P4.67 billion.

Despite the decline, the company is keeping a positive outlook as it closed last year with a positive net cash flow.

“These extraordinary conditions further built our resilience and strengthened our conviction in our long-term strategies. It demonstrated the highly relevant nature of our businesses’ catering to basic industries, and our operational adeptness as even in the worst of times, even at the peak of the lockdown, the company never saw negative net income,” Mr. Lao said in a statement.

He also said the company is aiming to hit the same income levels it earned in 2019.

D&L shares at the stock exchange rose by 4.2% on Wednesday, closing at P7.44 apiece. — Keren Concepcion G. Valmonte

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

LONDON — Anyone can be a banker these days, you just need the right code.   Global brands from Mercedes and Amazon to IKEA and...

Economy

AllDay Supermarket has tapped PayMaya to power its self-checkout counters with cutting-edge technology to elevate customers’ grocery shopping experience. A first for the Philippine retail industry, AllDay Supermarket...

Economy

INFLATION in the first eight months stood at 4.4%, quicker than the central bank’s 4.1% average inflation forecast for 2021. — PHILIPPINE STAR/ MICHAEL...

Economy

By Kyle Aristophere T. Atienza, Reporter PHILIPPINE President Rodrigo R. Duterte’s political allies — at least those who are running for the country’s top...

Economy

The Balagtas Station of the Philippine National Railway Clark Phase 1 Project is currently under construction. Photo taken on June 14. — PHILIPPINE STAR/...

Economy

A SENIOR economist at the Asian Development Bank (ADB) said a local bourse’s program for micro, small, and medium enterprises (MSME) is key to...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!