D&L declares P1.4 B dividends

D&L Industries, a manufacturer of specialty plastics, food ingredients and oleochemicals, approved the declaration of P1.43 billion in cash dividends.

This year’s cash dividend declaration is 167 percent higher than P536 million paid out in 2015 and is equivalent to 63 percent of the previous year’s recurring net income.

During the company’s annual stockholders meeting yesterday, management said D&L would pay a regular cash dividend of P0.16 per share plus a special cash dividend of P0.04 per share to shareholders of record as of June 20.

Payment date will be on July 8.

Last year, the company reported a recurring net income of P2.28 billion, or earnings per share of P0.32. This represented an increase of 12 percent year-on-year as sales volume for high margin products continued to expand.

In the first quarter of the year, net income similarly increased 12 percent to P576 million.

D&L said it remains committed to driving shareholder value, with the dividend payout policy increased to 50 percent from 25 percent of the previous year’s recurring net income and an option to declare special dividends.

This is on the back of minimal capex needs in the midterm, improving returns, very low net borrowings and good cash flow generation.

Including this year’s payment, D& L has paid out a total of P3.22 billion in cash to shareholders through dividends since it made its debut in the local bourse in 2012.

The listed firm also paid a 100 percent stock dividend last September.

For 2016, the company is optimistic on prospects for growth. It sees a 10 percent net income growth this year.

D&L Industries is a Filipino company engaged in product customization and specialization for the food, chemical, plastics and aerosol industries. Principal business activities include manufacturing of customized food ingredients, specialty raw materials for plastics, and oleochemicals for personal and home care use.