Listed food and plastic input manufacturer D&L Industries is planning to double its revenues coming from exports in five to 10 years as part of its medium-term plans.
Moreover, the company is on track to hitting its target profit for the year.
Alvin Lao, D&L executive vice president, said in an interview with reporters after the firm’s annual stockholders meeting that the company is aiming to grow the share of exports in its total revenues.
“From 2011 the export is 12 percent of our sales. By the first quarter of 2013, or in five quarters, it’s already 24 percent,” Lao said, adding that the firm is well positioned to continue to grow its market even overseas.
“These are mostly within Asia, but we are also growing our markets in the US and Europe. So it’s global,” he added.
According to Lao, the firm’s medium-term target is to continue its “export push.”
“Our overall target, maybe not five years, maybe 10 years, is to have our export be half of
our sales. That will take a long time. But, as you can see, our exports are improving and the weakening peso would help,” he said.
Lao also said that D&L is on track to hit its yearend recurring income target growth of 30 to 34 percent to about P1.3 billion.
“Our first-quarter income was 19 percent above the previous year. And, for some our projects, they will be effective in the second half. This means more income will come it later this year,” he explained.
D&L also declared regular and special cash dividends amounting to P535.71 million.
During the firm’s annual shareholders’ meeting, D&L said that it will pay regular cash dividend of P0.10 a share, plus special dividend of P0.05 a share to shareholders of record at the close of business on July 24, 2013. Payments will be made on August 19, 2013.
Overall, shareholders will receive P0.15 dividends a share, working out a dividend yield of 2.13 percent based on the closing price of its shares of P7.05 each on June 21.
D&L Industries has a dividend policy of a minimum 25-percent payout ratio based on prior year’s net income, plus option to declare special dividends. This year’s declared dividends translate to a dividend payout ratio of 40.3 percent based on the 2012 total net income of P1.33 billion.