D&L net income up 27%, exceeds P2B

Lao family-led food and plastic input manufacturer D&L Industries ended 2014 on a high note, with net profit breaching P2 billion and revenue exceeding P20 billion for the first time following the consolidation of Chemrez Technologies into its books.

D&L’s net profit grew by 27 percent to P2.033 billion on the back of a 39-percent rise in full-year revenue to P20.52 billion, the company yesterday reported to the Philippine Stock Exchange. This translated to a return on equity of 26.6 percent for the year versus 25.7 percent in the previous year.

The figures were presented on a pro-forma basis, assuming 100 percent of ownership of Chemrez for both 2014 and 2013. Last year, D&L acquired the remaining 65 percent of Chemrez, a deal that boosted the former’s revenue by 27 percent and net income by 16 percent.

In a briefing, D&L chief finance officer Alvin Lao said the company was expecting another record net profit this year, although revenue growth might ease due to the downturn in commodity prices.

Lao said the P2.4 billion average net profit forecast of D&L analysts this year was “achievable.”

The 39-percent growth in full-year revenue was driven by double-digit volume growth in food ingredients and oleochemicals and other specialty chemicals businesses.

High margin specialties, which accounted for 59 percent of sales, increased by 22 percent year-on-year, led by oleochemical specialties and customized specialty food ingredients.  The commodities segment accounted for 41 percent. Doris C. Dumlao