D&L sales up 45% in 1st 5 months

Food ingredient and specialty plastic additive manufacturer D&L Industries reported brisk export sales in the first five months of the year.

In a statement, D&L Industries announced a 45-percent year-on-year growth in export sales during the period, driven by the specialty plastics and food ingredients segments.

The increase in export sales translated to a revenue contribution of 17 percent from exports for the period. In 2013, the external market accounted for only 12 percent of its business.

The specialty plastics business, through First in Colours (FIC) and D&L Polymer & Colours (DLPC), accounted for over three-quarters of total exports.

In the five months to May, sales of exported specialty plastics were 40 percent higher than that of the same period last year. Most were raw materials used in the insulation of automotive wire harnesses, the company said.

D&L also noted the positive outlook for the global auto industry. Despite a slowdown in several emerging markets, demand in China, North America, and Europe remained “resilient,” it said.

D&L has been serving the plastics industry for 51 years, and one of its key strengths has been its ability to time the launch of new products.

“This has become more crucial today than ever as trends for fuel efficiency and greater electrification in cars drive need for more specialized raw materials,” the company said.

As a strategic partner, D&L helps in bringing forward new products and new processes with improvements in cost, weight, size, and quality.

“We always aim the best cost structure and superior quality for our customers. Moving forward, we see tremendous opportunities for volume growth and margin gains as the market demands more features and functionality,” FIC and DLPC managing director Lester Lao said.

Also, D&L reported a robust growth in exports of its food ingredients business. Its exports of oleo-fats grew by 67 percent year-on-year. Products are mainly exported to Asia-Pacific.

D&L aims to hit a market capitalization of about $1 billion in two years alongside its aspiration to join the roster of Philippine blue chips. Doris C. Dumlao