D&L forecasts R3.2-B earnings in 2018

D&L Industries, Inc., the country’s largest specialty foods ingredients, plastics and oleochemicals firm, expects to sustain its double-digit growth and is confident about generating at least R3.2 billion in profit this year.

In a press briefing, D&L President and CEO Alvin Lao said the company is enjoying a strong growth momentum, boosted by the expansion of both domestic sales and exports, particularly that of high margin specialty products.

Lao noted that the domestic economy continues to grow while inflation remains low. The firm also continues to produce more new products while venturing into new countries and entering new markets.

For 2017, D&L posted a 10.6 percent hike in recurring net income to R2.9 billion, or earnings per share of R0.41. Earnings before interest and taxes were higher by 12.3 percent at R3.7 billion. In the last quarter alone, earnings and volume growth continued to pick up following slower growth in the first half of the year due to the high base as a result of the national elections in the same period of 2016.

Net income in the fourth quarter last year increased by 12 percent to R786 million. Meanwhile, high margin specialty products (HMSP) volume grew by 10.5 percent, higher than the historical average growth of 7 percent. (JAL)