Latest Stories

D&L Industries reports net income of P1.33 B


MANILA, Philippines—Food and plastic input manufacturer D&L Industries breached the P1-billion net profit milestone in 2012 as the company boosted its margins by selling higher value added specialty products and reducing commodity-based businesses.

Including one-time gains from the sale of land, consolidated net income hit P1.33 billion last year, 34 percent higher year-on-year. Core net profit went up by 4 percent to P1.03 billion, the company disclosed to the Philippine Stock Exchange.

This year, D&L aims to chalk up a core net profit of P1.38 billion on the back of a mid-teens growth in sales volume and revenue.

“There is room for increases in margins. We’re going to increase margins by 1 percentage per year and the way to do that is not just to reduce sales of lower-margin (commodity products) but sell more high-margin products,” Lao said in a press briefing on Thursday.

Last year, customized food ingredients and other specialty products increased the group’s margins higher. Gross profit margin was up by 2.6 percentage points to 15.9 percent while net income margin went up by 1.8 percentage points to 9.5 percent.

This developed as D&L shifted its sales mix such that two-thirds of the business was now coming from higher-margin specialty products and only a third was reliant on commodities like refined vegetable oil.  In 2011, the low-margin refined vegetable oils business accounted for 60 percent of sales, putting pressure on profitability.

Through wholly-owned subsidiary Oleo-Fats, D&L manufactures a diverse line of specialty fats and oils, culinary and other specialty food ingredients as well as industrial fats and oils for leading food manufacturers and fast food restaurant chains in the country.

D&L also owns First in Colours and D&L Polymers & Colours, which produce a line of various products used in the manufacturing of plastic products including pigment blends, color and additive masterbatches and engineered polymers for local and offshore markets.

Another wholly owned subsidiary, Aero-Pack Industries, is the only manufacturer of customized aerosol products in the country and is a leading contract filler for various home and personal care product producers.

Publicly listed affiliate Chemrez Technologies is engaged in the manufacture and sale of specialty industrial chemicals such as biodiesel, oleochemincals, powder coatings and resins, which have various applications in the construction, shipping, soap and detergent and furniture industries.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Aero-Pack Industries , D&L Industries , food manufacturing , gross profit margin , Philippine Stock Exchange , plastic manufacturing

  • http://www.facebook.com/profile.php?id=100003516764413 Jean Claude

    this is the type of industry that we need in this country, manufacturing industries!

  • investor888

    At a Book value of P 9.06/share as seen at Bloomberg’s data, DNL is nowhere within the Price to Book Value ratio (P/BV) of consumer food play at a range now of  2.8 & higher as it is an indirect consumer food play.   It is a good investment choice with a vast growth opportunities. 

  • http://profile.yahoo.com/SBOKR3M2ZOJK4N45O4ONN3G63A Trilogy

    He only goes by one name, “Lao”?

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • What Went Before: Malacañang allies alleged involvement in pork scam
  • Timeline: Napoles tell-all
  • 12 senators on Napoles ‘pork’ list, says Lacson
  • Napoles surgery in Makati hospital successful
  • Save the queen? Aide takes fall for Enrile, Gigi Reyes
  • Sports

  • Mixers trim Aces; Painters repulse Bolts
  • Donaire junks Garcia as coach, taps father
  • ’Bye Ginebra: No heavy heart this time
  • UAAP board tackles new rules
  • Baguio climb to decide Le Tour de Filipinas
  • Lifestyle

  • The best flavors of summer in one bite, and more
  • Homemade yogurt, bread blended with pizza, even ramen
  • Visiting chefs from Denmark get creative with ‘ube,’ ‘ buko,’ ‘calamansi,’ mangoes
  • Salted baked potatoes
  • A first in a mall: Authentic Greek yogurt–made fresh in front of diners
  • Entertainment

  • Return of ‘Ibong Adarna’
  • Practical Phytos plans his future
  • In love … with acting
  • From prison to the peak of success
  • ‘Asedillo’ location thrives
  • Business

  • This time, BIR goes after florists
  • Philippine Airlines to stop shipment of shark fins
  • PH banks not ready for Asean integration
  • Stocks down on profit-taking
  • Banks allowed to use ‘cloud’
  • Technology

  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Engineers create a world of difference
  • Bam Aquino becomes Master Splinter’s son after Wiki hack
  • Mark Caguioa lambasts Ginebra teammates on Twitter
  • Opinion

  • Editorial cartoon, April 24, 2014
  • Talking to Janet
  • Respite
  • Bucket list
  • JPII in 1981: walking a tightrope
  • Global Nation

  • PH seeks ‘clearer assurance’ from US
  • China and rivals sign naval pact to ease maritime tensions
  • What Went Before: Manila bus hostage crisis
  • Obama arrives in Tokyo, first stop of 4-nation tour
  • Believe it or not: Filipinos love US more than Yanks
  • Marketplace