The Lao family’s D&L Industries Inc. could be valued at $2 billion in three to five years as its core businesses, including food ingredients, plastics and chemicals production, are poised to deliver continued earnings growth, an official said.
D&L chief financial officer Alvin Lao told reporters in a briefing Tuesday the company was on track to grow net income by 10 percent in 2016, above its P2.28 billion profit in 2015.
He said earnings growth could continue at that pace annually over the next five years, tapping on the growth of the country’s strong consumer economy.
“If you look at all our businesses, they all have something to do with the consumer. There’s food, construction, cars, appliances and paint,” Lao told reporters.
D&L is little known to many consumers but the food ingredients it makes, like cooking oils and customized formulations, are likely found in meals served in the country’s biggest fast-food chains and restaurants.
Lao said higher earnings would help the firm achieve a market valuation of $2 billion by 2021. D&L, which was valued at $350 million when it listed in December 2012, is now worth $1.4 billion, he said.
Helping earnings this year is consumption due to the election season, he said. D&L saw first quarter net income hit P576 million, up 12 percent, compared to the same period in 2015. Miguel R. Camus