Friday, September 25, 2020

D&L Industries Eyes Higher Profits In 2020

D&L Industries Eyes Higher Profits In 2020

Spotlight

7 Commandments To Revitalize The Country Safely

Medical experts recommend strict health protocols for public transportation.

Alibaba Cloud Launches New Digital Ecosystem Strategy In The Philippines

This will help local businesses adapt further to the new normal!

EDC Donates PCR Machines To Enhance Negros Oriental’s COVID-19 Resiliency

Energy Development Corporation donates equipment worth P8.5-million to Negros Oriental.

CeMAP, PISI Express Full Support For Bayanihan To Recover As One Act

The Cement Manufacturers Association of the Philippines and Philippine Iron and Steel Institute announce full support to the recently signed Bayanihan to Recover as One Act.

D&L Industries, a manufacturer of food ingredients, plastics, and oleochemicals, targets its net profit to return to double-digit growth in 2020, as it ramps up its expansion project in Batangas to boost capacity and grow its export business.

In a press briefing, D&L President Alvin Lao said the achievement of double-digit growth next year depends on the absence of trade problem between the United States and China, and the recovery of its specialty plastics business segment.

The company attributed the decline in earnings of its specialty plastics in the first nine months of the year to uncertainties in the global trade market due to the lingering effects of the trade war, and the slowdown in the global automotive industry.

But Lao noted its food ingredients, aerosols, and oleochemicals business segments are “getting better”.

“We believe that we are at the bottom of the cycle in terms of net income decline… We’re already seeing signs of our business picking up, especially in the food segment where margins and sales mix are continuing to improve,” he said.

Lao said their domestic business is seen to start recovering in the fourth quarter although exports may not bounce back as fast.

His optimism is based on the continued easing in inflation, lower interest rates and reserve ratio requirements, ramp-up in government spending, and the reduction in port congestion.

“Overall, the company continues to believe that its long-term growth story remains intact and its prospects remain stable. The expansion plan in Batangas is on schedule to be completed and operational in 2021… The upcoming facilities will add the capability to manufacture downstream packaging and will allow the company to capture a bigger part of the production chain,” the firm said in a statement.

D&L reported its recurring income reached PHP2.03 billion in the first nine months of 2019, 15 percent lower than PHP2.40 billion in the same period last year.

In the third quarter alone, net income fell 29 percent to PHP617 million from PHP874 million.

Sales dropped 18 percent to PHP16.56 billion in the first nine months of 2019 from PHP20.17 billion last year. (PNA)

Latest News

7 Helpful Apps For Your Online Classes

Make your online classes easier to deal with with these apps!

PLDT Assures Stable Internet Connection During Maintenance Works

PLDT assures its users that their connection would be stable during its emergency maintenance works.

Taguig Inaugurates COVID-19 ‘Mega-Complex’ Facility

Taguig City inaugurates its COVID-19 mega-complex facility which will host the new city-run Molecular Laboratory, the Lakeshore Mega-quarantine facility, and the Lakeshore National Testing Facility.

Palace Believes AFP Not Involved In Fake FB Accounts

Malacañang believes that none of the fake accounts taken down by Facebook are accounts managed by the Armed Forces of the Philippines.

CA Junks Suit Filed By Customs Exec Accused Of Corruption

The Court of Appeals dismisses for lack of merit a petition filed by Bureau of Customs official Teodoro Jumamil questioning his suspension by the Office of the Ombudsman.

PH Displays ‘Int’l Leadership’ For Call To Address Climate Change

The Institute for Climate and Sustainable Cities, an international climate and energy policy group based in the Philippines, lauds the Philippine government for its display of "international leadership" at the 75th United Nations General Assembly.

Mobile Legends: Unveils New Trailer, New Hero Updates and Improved Gaming Experience

Expect a more immersive experience with the new era of Mobile Legends: Bang Bang!

San Juan Aids Hearing-Impaired Man Return Home

A locally stranded person with disability receive assistance from San Juan City.

Group: Bulacan Airport Biggest ‘Ray Of Hope’ For Migrant Workers

Groups of migrant workers laud the plan of San Miguel Corporation to construct an international airport in Bulacan saying it as a potential source of employment and livelihood opportunities for displaced local and overseas workers displaced.