D& L declares 100% stock dividend

D& L Industries Inc. announced yesterday a 100 percent stock dividend to shareholders. This followed the approval by the Securities and Exchange Commission ( SEC) of the company’s increase in capitalization from P4 billion to P18 billion. Shareholders on record as of Aug. 20 are entitled to the dividends, which are payable on Sept. 17. Qualified shareholders will have one share for every one share held. The stock dividend declaration would cost the company about P3.57 billion, to be taken out of its unrestricted retained earnings. Just last month, D& L paid a regular cash dividend amounting to P0.15 per share or a total of P536 million, to shareholders of record as of June 30. “This year ’ s dividend payment, excluding the special dividend of 100 percent stock, will bring the total cash returned to shareholders to P1.79 billion since the company listed on Dec. 12, 2012,” D& L said. In terms of dividend policy, the company is committed to returning to shareholders 25 percent of prior year’s net income via dividends. It also has an option to declare special dividends. D& L is a Filipino- owned company engaged in product customization and specialization for the food, plastics, and aerosol industries. Its principal business activities include manufacturing of customized food ingredients, specialty raw materials for plastics, and oleochemicals for personal and home care use. Established in 1963, D& L has the largest market share in each of the industries it serves, as well as longstanding customer relationships with the Philippines’ leading consumer and chemical companies. The company derives bulk of its business from the food industry and the rest from supplying raw materials for the durable goods sector. In the first quarter, D& L reported a net income of P512 million, or earnings per share of P0.14. This is 16 percent higher than the same period last year. First quarter revenues were up 15 percent, driven by volume growth in food ingredients and oleochemicals. High margin specialties, which accounted for 59 percent of revenues, improved margins during the period.