D&L INDUSTRIES, Inc. said it saw earnings “recover strongly” after its net income in the third quarter and in the first nine months of 2021 surpassed their pre-pandemic levels.
The company booked a net income of P768 million in the third quarter, 25% higher than the P617-million profit logged in 2019. Meanwhile, it gained 34% compared to its P573-million net income in the same period last year.
“We could end up with fourth quarter being very strong and even exceeding third quarter [results], it is possible,” Alvin D. Lao, president and chief executive officer of D&L, said in a media briefing on Wednesday.
Sales in the third quarter amounted to P7.63 billion, 33% higher from a year ago and 38% more than its pre-pandemic or 2019 sales.
For the first nine months, D&L posted a P2.16-billion profit, jumping 57% year on year from P1.37 billion and up by 7% from P2.03 billion in 2019.
The company said the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law “had a +4% impact” on its year-to-date net income.
“The nine months 2021 net income is now 83% of the full-year 2019 net income… We are on track to exceed the 2019 net income,” Mr. Lao said. D&L’s full-year income in 2019 amounted to P2.62 billion.
The company’s topline for the nine-month period totaled P21.53 billion, up by 35% from P15.92 billion a year ago and 30% more than the P16.56-billion sales seen in 2019.
D&L said “exports now account for 32%” of its nine-month revenues. The company aims to have its export sales make up for half of its total sales in the long term. D&L’s Batangas plant expansion will be “instrumental to its future growth” as it further develops coconut-based products and as the company targets new international markets.
“For the first nine months of the year, most business segments continued to post significant growth compared to 2020,” D&L said.
Net income for its food business surged by 105%, with volumes and sales improving by 4% and 39%, respectively. For its oleochemicals segment, Chemrez Technologies, Inc.’s profits grew 33% in the first nine months as its volume grew by 13%.
Meanwhile, its specialty plastics saw a year-on-year 46% income growth “driven by higher volume for both engineered polymers and colorants and additives.” D&L’s income from its consumer ODM products inched up to P206 million as total volume grew 30%.
D&L said it “remains optimistic” as holiday-induced spending, upcoming national elections and the country’s vaccination program are seen to aid its near to medium-term recovery.
D&L shares rose 1.18% or 10 centavos to close at P8.59 apiece on Wednesday. — Keren Concepcion G. Valmonte
