Chemical manufacturer D&L Industries Inc. on Thursday said its income in the first quarter rose 12 percent to P780 million from the previous year’s P695 million.
Alvin Lao, the company’s president and CEO, said the company was able to grow its profits despite the surge of Omicron variant of Covid-19, which led to the imposition of Alert level 3 in January. Given the results for the first quarter, Lao said the company may hit its record annual income in 2018 at P3.1 billion.
“We think it’s possible that we can reach that (2018 income) this year,” Lao said, adding that the company is hoping that there won’t be a surge in cases in the coming months.
Revenues grew 43 percent to P9.99 billion from the previous year’s P7 billion, mainly due to the surge in commodity prices.
Average coconut oil and palm oil prices were both up by 50 percent during the quarter, caused by the war in Ukraine and the proposed Indonesian ban on palm oil. The company expects prices to be elevated in the near term. Sales mix tilted towards commodities, such as oils used for food and biodiesel due to the strong performance of the segment with volume up 18 percent year-on-year.
Commodity sales now account for 47 percent of sales from just 43 percent last year, while the higher margin specialty products accounted for 53 percent.
Lao said many food companies had decided to forego the introduction of new products and stuck to their old menu, as they remain cautious due to the pandemic.
The company’s exports grew 45 percent year-on-year and now contributes a third of its revenues as DNL grows its international customer base.
“In the near-term, demand will likely be defined by two opposing forces – continued economic reopening on one hand, and generally higher prices of basic commodities on the other,” Lao said.