MANILA – D&L Industries, a manufacturer of specialty food ingredients, plastics, and oleochemicals, remained optimistic about long-term growth even after reporting a decline in earnings in the first quarter of 2020 due to the coronavirus disease 2019 (Covid-19) pandemic.
“I am not able to give a projection but what I can tell you is that it looks like the worst is over…Overtime, as we transition from ECQ (enhanced community quarantine) to GCQ (general community quarantine) and finally lifting the quarantine, things will get better,” D&L president Alvin Lao said in an online press briefing Tuesday.
Lao said businesses may not be back to normal “for a while” similar to other countries which imposed coronavirus quarantine ahead of the Philippines.
“However, just like any other crisis that we’ve gone through in the past, this is also an opportunity for our business to build long-term resilience,” he said.
Lao said the Covid-19 situation has also presented various opportunities.
“We are seeing this, people are really focusing on health, on everything from all natural. Coconut oil we see that interest is very strong, the sales are very strong, so we are benefiting from that. Our coconut oil-based products are selling very well,” he added.
Lao said people spend more on food and home care items particularly disinfectant, alcohol, chemicals, and motorcare.
He also assured the company remains committed to its Batangas expansion, adding “we see its long-term investment merits remaining intact” although its construction has been moved by about three months as work has been suspended during the ECQ.
Meanwhile, D&L reported its recurring income reached PHP515 million in the first quarter of 2020 from PHP748 million during the same period last year.
This is 13-percent lower quarter-on-quarter and 31 percent lower than the same period last year.
Revenues also declined by 3 percent to PHP5.7 billion in January to March from PHP5.88 billion in the same period in 2019.
Sales volume for food ingredients rose 22 percent in the first quarter, mostly for commodities such as edible oils, as consumers cooked more at home instead of buying from restaurants.
Aerosol volumes also increased by 12 percent due to higher sales for disinfectants and other cleaners.
Exports rose 12 percent to PHP1.3 billion from PHP1.1 billion due to higher demand for coconut oil-based products after coconut oil has been noted for its anti-viral properties.
“Not all countries are under lockdowns, meaning exports namin nakakatuloy pa rin (our exports continue) plus it allows an interest in coconut oil-based products,” Lao added. (PNA)
