Health goods, fuel drive D&L sales

While Metro Manila reimposed a more stringent modified enhanced community quarantine for two weeks last month, most of their customers were better prepared and had continued to operate

Listed specialty foods ingredients, plastics and oleochemicals firm D&L Industries Inc. projects its earnings to exceed its P1 billion second-half target.

“Indications are it would be better than what we thought” and noted that their customers customers are recovering faster, particularly non-food manufacturing, after the tight lockdown imposed in the second quarter due to the pandemic, D&L president Alvin D. Lao said in an online press interview.

Lao noted while Metro Manila reimposed a more stringent modified enhanced community quarantine (MECQ) for two weeks last month, most of their customers were better prepared and had continued to operate.

During the MECQ, D&L’s customers were able to generate revenues by tapping online sales and delivery channels.

Its oleo-chemicals business is benefiting from increased mobility which translated to higher bio-diesel sales while its specialty plastics is benefiting from the reopening of the global economy which is boosting sales to export-oriented automotive companies.

Health trend boost

The pandemic has accelerated the adoption of the health and wellness trend which helped boost sales of specialty products related to personal care, organic cleaning products and disinfectants.

Demand for plastics used for packaging also enjoyed stronger demand as consumers preferred using single use plastic over washable items because of sanitation.

“The third quarter is definitely better than the second where operations of some customers were practically zero,” Lao said adding that, “the fourth quarter will be hard to say because there may not be Christmas parties although new COVID-19 cases are not rising while there seems to be fewer serious cases than before.”

He is more optimistic about 2021 as it is generally expected that economies worldwide will speed up recovery next year.