D&L Industries on track to hit 2017 growth target

D&L INDUSTRIES, Inc. (DNL) is on track to hit its 10% growth target for 2017, as its earnings and revenues bounced back in the third quarter.

The listed food, chemicals, and plastics manufacturer delivered a 15% increase in earnings during the three months ending September to P771 million. This follows a 27% climb in revenues to P7.2 billion for the period.

DNL had previously revised its profit guidance in the first half of 2017, noting the higher figures in the comparable period in 2016.

“In the fourth quarter there will not be that high base from elections anymore. So it looks like there’s a better chance now that we will hit at least a 10% growth for the year,” DNL President and Chief Executive Officer Alvin D. Lao told reporters in a press briefing in Makati City last week.

On a nine-month basis DNL’s earnings were up 10% to P2.12 billion, following a 25% increase in revenues to P19.94 billion.

The food ingredients business contributes the bulk of DNL’s earnings at 36%, followed by the oleochemicals group at 32%, specialty plastics at 22%, and aerosols at 7%.

DNL’s export business was also up 74% to P4.96 billion, accounting for 25% of the group’s overall revenues.

“Moving forward, we continue to see robust growth across all our segments. This will be supported by the still vibrant economy, strong growth in our export sales, and our continued investments in R&D,” Mr. Lao said. —