D&L Industries, Inc. (DNL) sees better results for the April to June period on the back of lower inflation and higher consumer spending, after the plastics and oleochemicals manufacturer booked flat earnings in the first quarter.
“The first quarter was weak. We’re optimistic we’ll see better results for the second quarter,” DNL President and Chief Executive Officer Alvin D. Lao told reporters after the company’s annual shareholders’ meeting in Quezon City yesterday.
Mr. Lao said that prices of commodities are lower now compared to last year, as gasoline and diesel prices have also dropped. He also observed a higher number of foreigners coming to the country, which may translate to increased consumer spending.
The top executive, however, noted that the company did not see a significant impact from the midterm elections this year, compared to previous election years that saw a spike in consumer spending.
“Unfortunately because the budget was not passed until April, ’di umabot sa election spending so wala masyadong effect,” Mr. Lao explained, referring to the delayed passage of the national budget.
He also noted that the company had fewer operating days in the second quarter because of the Holy Week, which fell on the first quarter last year.
DNL earlier targeted to increase its net income by 10% this year, but revised this due to the weak first quarter.
“As of now, positive pa rin naman but in terms of net income target, it’s still under review,” Mr. Lao said when asked for his outlook for the second half of the year.
The company on Tuesday also declared P2.04 billion in cash dividends, translating to 28.6 centavos of dividends per share. This is 2.8% higher than the stock’s closing price of P10.20 last June 7.
Mr. Lao noted that this year’s dividends is 10% higher than the P1.86 billion paid out last year, equivalent to the profit increase they recorded for 2018. With this, DNL has already declared P8.8 billion in total dividends since it was listed in 2012.
DNL booked a net income attributable to the parent of P748 million in the first quarter of 2019, one percent higher year on year. Gross revenues, meanwhile, declined by eight percent to P5.88 billion.
Shares in DNL climbed 0.58% or six centavos to close at P10.32 each at the stock exchange on Tuesday. — Arra B. Francia