3 days ago
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
