Food ingredients and chemical manufacturer D&L Industries grew its net profit by 7.5 percent year-on-year to P1.35 billion in the first semester, as favorable commodity prices boosted revenues.
For the second quarter alone, net profit rose by a modest 1 percent year-on-year to P688 million, coming from a high base in the same period last year due to election spending.
Growth is seen to normalize in the last two quarters of the year but the company has tempered profit expectations for the full year. D&L now expects full-year profit to grow at a single-digit pace compared to a double-digit growth guidance stated in the previous quarterly report.
D&L’s revenue hit P12.7 billion, up 24 percent year-on-year due to higher commodity prices.
Export sales rose 64 percent year-on-year to P2.98 billion in the first six months of the year. Exports accounted for 23 percent of total revenue, up from 18 percent in 2016. The food ingredients segment is now the biggest contributor to exports, accounting for 42 percent of total versus 19 percent in 2016. —DORIS DUMLAO-ABADILLA