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GMA Network
5 days ago
- Business
- GMA Network
D&L optimistic about hitting 10% profit target for 2025
Lao family's specialty food ingredients and oleochemicals producer D&L Industries Inc. is optimistic that it will hit or surpass its 10% profit target for 2025, as its first half earnings posted 19% growth. 'For now, we're sticking to double-digit growth… But, if anything, knock on wood, it seems we have a higher chance of exceeding rather than going below that income target,' said D&L president and CEO Alvin Lao at a virtual briefing. 'For last year, D&L's net income was P2.34 billion. For the first six months of 2025, we already hit P1.396 billion. So, if you just annualize that, it's roughly P2.8 billion; we're at something like 19% above last year's net income.'' He said that D&L is expecting to sustain the growth path towards the second half of 2025 'since inflation has gone down compared to the first semester' as well as amid expectations that interest rates will be cut further. Lao added that the US tariffs will not have much impact on D&L's exports since the US market accounts for only 3% of its revenues, with 25% coming from its other export markets such as the Asia Pacific region, from China all the way down to Australia and New Zealand, as well as Europe, Latin America, and even Africa. The company's first half earnings were mainly driven by the consistent quarterly profitability of the Batangas plant and the robust exports business amid elevated coconut oil prices. —VBL, GMA Integrated News
GMA Network
03-06-2025
- Business
- GMA Network
D&L upbeat on exports despite global uncertainties
Listed oleo-chemicals and food ingredients maker D&L Industries Inc. is expecting exports to drive its continued profitability despite global trade uncertainties amid US reciprocal tariffs and expected retaliatory moves by major economies. 'While global uncertainties seem to be the dominant theme affecting business sentiment in the near term, D&L remains unfazed and continues to focus on building resiliency and long-term growth strategies. Management believes that with D&L's product portfolio, the majority of which caters to basic and essential industries, the company will continue to grow and be relevant in an ever-changing business environment and world trade order,' the company said in a statement following its Annual Shareholders Meeting. 'Over the longer term, management has a lot of confidence that the new investments that the company has made over the past years will pave the way for higher and more sustainable profit growth,' it said. Cash flow will continue to be healthy, D&L president and CEO Alvin Lao said, and 'we do expect profitability to continue to increase.' 'As part of the efforts of ramping up production in our Batangas plant, we're focusing on exports, and because of that, we are visiting clients in other countries and attending trade shows and exhibitions to try and drum up business. Because of that, we are able to get new clients in new markets all the time,' said Lao. During its stockholders' meeting, D&L declared total cash dividends of P1.52 billion, up from the P1.49-billion payout a year ago. D&L booked a net income for the first quarter of 2025 of P681 million, up 10% year-on-year. Lao earlier said that 'the Philippines may be one of the least affected countries given its import-heavy trade balance.' 'In addition, the lower proposed reciprocal tariff for the Philippines versus its neighboring countries may put the Philippines in an advantageous position,' he said. In April, US President Donald Trump announced sweeping reciprocal tariffs on its trading partners, including the Philippines, which would be facing a 17% tariff on its imports to the US. Trump eventually put his new tariff strategy on hold for 90 days. —VBL, GMA Integrated News
