D&L net income soars to P2.4B

D&L Industries Inc. reported a 13.3-percent increase in its net profit in the first nine months of 2018 to P2.4 billion from P2.12 billion in the same period last year on the back of strong growth from its highmargin specialty products (HMSP).

In a disclosure on Friday, D&L said HMSP revenue share grew to 63 percent in the period from 58 percent in 2017.

Oleochemicals remained the largest contributor to net income at 28 percent, followed by specialty plastics, 24 percent; aerosols, 6 percent; and food ingredients, 2 percent.

Earnings before interest, tax, depreciation, and amortization dropped to P3.33 billion from P4.1 billion a year ago.

Export revenues also stood at P4.6 billion, down 8 percent from P5 billion year- on-year, weighed by higher prices of raw materials.

For the third quarter alone, Eagle Cement’s net income grew by 13.4 percent to P874 million from P771 million.

HMSP volume in the three months ending September grew by 8 percent year-on-year, with its revenue contribution also higher at 63 percent, compared with 58 percent in 2017.

“The growth in the high margin side of the business is a reflection of our investments in research and development, which [allowed] us to increase our market penetration and to develop more complex and customized products for our customers,” the firm said.

D& L President Alvin Lao said on Friday the company was confident of hitting its net- income growth goal of 10 percent to P3.2 billion in full- year 2018.

“Since the first nine months, we had grown 13 percent in net income, so I say we are on track to hit the target. It is achievable,” he said at a news briefing in Makati City.

D&L plans to expand its exports by 50 percent over the next few years.

Lao had said the company was in talks with Asian firms for potential collaborations on the distribution of its products in the region.