Food ingredients maker D&L Industries, Inc. is pushing back the start of commercial operations of a plant in Batangas to January 2023, citing recent events that caused disruptions.

The plant, under the company’s unit Natura Aeropack Corp. (NAC), was expected to begin commercial operations in May 2022, but was granted an extension by the board of the Philippine Economic Zone Authority (PEZA).

In a stock exchange disclosure on Friday, D&L said, “in consideration of the recent turn of events such as the Omicron-related surge in COVID-19 cases early this year, global port congestion and supply chain disruptions, as well as longer-than-expected processing of registration and licenses, PEZA has granted [an] extension to January 2023.”

NAC is one of the subsidiaries of D&L undertaking the expansion in Batangas, specifically for the manufacture of coconut oil fractions and coconut base surfactants, and downstream consumer products.

“While the pandemic has posed challenges to the completion of our Batangas plant, this expansion is coming at an opportune time given the strong demand for high value coconut-based products in the export market,” D&L President Alvin D. Lao said in a press release.

“This is evidenced by the resilient and robust growth in our export sales which grew 55% year-on-year in the first nine months of 2021. As the world moves beyond this pandemic, this plant will help us cater to emerging, relevant industries where we see opportunities for new growth. Our existing capacity is still sufficient to serve requirements in the near term, as such the extension in the SCO should have no material impact on current operations,” he added.

NAC and D&L Premium Foods Corp. (DLPF), another wholly owned subsidiary of D&L Industries in Batangas, will start commercial operations concurrently. DLPF will manufacture food ingredients to cater to a growing export business.

D&L’s expansion is on a 26-hectare property in First Industrial Township Special Economic Zone in Batangas.

The ongoing expansion, referred to as Phase 1, will occupy roughly half of the property and costs P6.2 billion, with remaining capital expenditures at P1.8 billion for the year.
In September, D&L executed its maiden bond offering, raising P5 billion to help fund the remaining capex for the expansion.

The new plant will develop high value-added coconut-based products and add the capability to manufacture downstream packaging.

“With near-term catalysts such as the continued economic reopening and the boost from election spending, the company sees room for further earnings growth,” the company said.

In the third quarter of 2021, D&L’s attributable net income rose 34% to P768 million from P572.6 million in 2020.

From January to September last year, attributable net income grew 57.4% to P2.16 billion from P1.37 billion in 2020.

At the stock exchange Friday, D&L shares closed unchanged at P8 each. — Luisa Maria Jacinta C. Jocson

Atlas Consolidated Mining and Development Corp. on Friday reported P3.86 billion in net income last year, or more than 32 times higher than P118 million a year earlier, due to stable production and higher metal prices.

“The turnaround of Atlas Mining is credited to a resilient and stable operation that was sustained over the years with a disciplined focus on safety and efficiency,” Atlas Mining President Adrian S. Ramos said in a statement, adding that these factors enabled the company “to survive the market downturn and to optimize earnings in a resurgent commodities market.”

The company said metal prices stayed high last year, with the average price of copper rising by 52.7% to $4.26 per pound, while gold rose 1.4% to $1,802 per ounce.

Atlas Mining’s wholly owned subsidiary, Carmen Copper Corp., reported higher copper production and shipments in the second half of 2021 due to “improvements in copper head grades and recovery.”

Copper metal production in the second half of the year increased 13% to 43.68 million pounds from 38.73 million pounds. Gold increased 25% to 13,997 ounces from 11,716 ounces.

However, copper production decreased year on year to 82 million pounds from 107.09 million pounds in 2020. Gold also declined to 25,173 ounces from 47,857 ounces.

Earnings before interest, tax, depreciation, and amortization was P9.77 billion for the year, 10% higher than P8.92 billion in 2020. Core income in 2021 rose to P3.28 billion, up 26.6% from P2.59 billion in the previous year.

“Atlas Mining continues to strengthen its overall financial position supported by its improving earnings, efficient operations and robust metal market,” the company said.

At the stock exchange, Atlas Mining shares increased by 37 centavos or 5.01% to finish at P7.75 on Friday. — Luisa Maria Jacinta C. Jocson

Coconut products exporter Axelum Resources Corp. said it had reduced its direct greenhouse gas emissions by up to 20% in 2021 as part of its effort to enhance the company’s climate change resiliency.

“Our climate action response forms a major part of our inclusive sustainability agenda. Aligned with the goals of the Paris Agreement, we enacted a proactive approach to contribute to mitigating the effects of global warming. For Axelum, this is just the beginning of a long-term commitment to advancing sustainable development for the benefit of the next generation,” Axelum Chairman Romeo I. Chan said in a statement on Friday.

In 2020, Axelum implemented methodologies and standards set by the Department of Environment and Natural Resources to measure its greenhouse gas output.
The company installed equipment to regulate electricity voltage supply and limit dependence on diesel-powered generators.

For 2022, Axelum plans to invest in a solar energy facility for its Medina plant in Misamis Oriental.

“This is reflective of a progressive mindset to deeply integrate the value of sustainability in the context of our business,” Mr. Chan said.

Axelum produces, manufactures, and exports coconut products including coconut water, desiccated coconuts, coconut milk powder, coconut milk and cream, reduced fat coconut, sweetened coconut, and coconut oil.

In the third quarter of 2021, its attributable net income increased 44.5% to P260.3 million from P180.2 million the year before.

From the January to September period, attributable net income rose 51% to P578.7 million from P383.1 million in 2020.

At the stock exchange Friday, Axelum shares increased P0.09 or 3.45% to finish at P2.70 apiece. — Luisa Maria Jacinta C. Jocson