EARNINGS of D&L Industries, Inc. is expected to recover to P900 million-P1 billion in the second half of the year, picking up after hitting its “lowest” in the second quarter when it fell 57% to P287 million.
In a media briefing, Wednesday, D&L President and CEO Alvin D. Lao said the company expects improved resilience in the next six months, regardless if the coronavirus crisis is solved or not.
“We don’t think second-half things will be as bad as they were in the second quarter, particularly in April,” he said. “Even if the pandemic doesn’t go away entirely, I think everyone has already accepted this is going to stay with us, and trying to find ways to adapt.”
The company disclosed its second-quarter financial performance on Wednesday, which showed a 13% sales decline to P4.5 billion.
This brought D&L’s year-to-date net income down 43% to P802 million. Net sales for the six months slid 8% to P10.17 billion.
Almost all its business segments posted lower net income, primarily its food business, which fell 60% year on year.
Mr. Lao attributed this to the closure of several restaurants in the early days of the lockdown from late March to April, as businesses were trying to figure out how to operate despite mobility restrictions.
The oleochemicals and specialty plastics businesses also posted a 35% and 37% drop in net income, respectively. Only the aerosols business grew for the period, with net income increasing 20% as demand for disinfectants grew due to the virus concern.
“The alcohol business didn’t exist at the beginning of the year. We only started selling just before the lockdown started… Definitely we had to increase capacity,” Mr. Lao said.
Despite the challenges, D&L still intends to pursue the expansion of its 26-hectare plant in Batangas, which will support the expected recovery of demand for the company’s products. Mr. Lao said work in the facility might finish by end-2021.
He added the company expects that people will continue putting greater emphasis on health, safety and cleanliness, which will further lift D&L’s sales even after the pandemic.
Shares in D&L at the stock exchange slid two centavos or 0.44% to P4.50 each on Wednesday. — Denise A. Valdez