D&L expects 2022 record profit streak to continue through 2023

The Lao family’s food ingredients and plastics manufacturing giant D&L Industries Inc. expects to extend its record profit growth streak through 2023 with the further reopening of the economy.

D&L president and CEO Alvin D. Lao told reporters on Monday earnings in 2022 would surpass the 2018 net income peak of P3.2 billion.

“This will be our best year… next year should be better,” Lao said.

He said the group was taking its cue from the successful reopening in other countries as strict pandemic rules are further relaxed.

“The way I see it is the [domestic] mask mandate was removed a few months ago. We are about six months behind other economies like the US and United Kingdom. If you look at the US and UK now, they are very normal,” Lao said.

“So we are about six months behind [meaning] next year should be a good year,” he added.

Lao admitted he was surprised and relieved with their rebound, having earlier anticipated the worst for 2022 after the Omicron variant emerged.

“In January, when Omicron hit, mentally I was thinking the whole year would be written off because of more lockdowns,” he said.

Drivers for 2022 include the company’s non-food business segment such as oleochemicals and products made from vegetable oils.

Their products catering to the food segment was expected to recover next year Lao noted.

“Food took a while. Our tourism numbers are still very low and a lot of people I know are still hesitant to go out,” he said.

The company on Monday capped the banner year with its 10th anniversary as a listed company on the Philippine Stock Exchange.

“D&L, at its heart, is a family business. And for us, the primary purpose of the [initial public offering] was a strategic move to promote family business continuity. As a listed company, we are forced to continually improve governance, and this is very much aligned with our intents,” Lao said during the anniversary event.

Growth next year would also be supported by the opening of a new manufacturing facility in Batangas, which would allow the company to aggressively expand the growing export business.

“We look forward to the next decade with excitement and optimism especially as our Batangas plant is set to commence commercial operations by the middle of next year,” Lao said.

“This plant represents the next leg of growth for the company and our aspiration to be recognized globally as a world class Filipino manufacturing company,” he added.