D&L Industries, Inc., a producer of food ingredients, plastics and chemicals, is looking to expand its capacity in the next seven years in a bid to become 50 percent export sales-driven by 2025.
“We will expand by 2021 at the earliest because we’ll need time to plan… and then after construction, there is still the set-up time and [the]debugging [required],” D&L President Alvin Lao told reporters on the sidelines of a news conference last week.
“We would be adding capacity to our existing operations and we might also add capacity for new products as well. So we’re looking at various different options,” he added.
Following a partnership it forged with US-based Ventura Foods for the production and distribution of foods in the latter’s Asian markets, D&L is now in talks with several firms in the Asia Pacific region for more potential collaborations.
The company and its affiliate are currently present in Hong Kong, Japan, Indonesia, and China, and Thailand, among others.
D&L said it is targeting to grow its bottom line by 10 percent this year to achieve at least P3.2 billion in net income as it continues to expand both its domestic and exports sales.
“For this year [I think we will hit more than P3 billion] because we already booked P2.9 billion net income in 2017. If you just add 10 percent, that’s P3.2 billion almost, and our target is at least 10 percent growth,” Lao said.
Lao noted that the domestic economy continues to grow while inflation remains low. In addition, the company continues to manufacture more new products while venturing into new countries and entering new markets, particularly in the Southeast Asian region.
In full-year 2017, D&L saw recurring net income grow 10.6 percent to P2.9 billion from P2.63 billion in 2016 backed by its export business. For the fourth quarter alone, profit grew 12 percent to P786 million versus the P702 million recorded in the same period the previous year.
Export sales contributed 25 percent to D&L’s earnings from just 18 percent in 2016, growing 68 percent year-on-year to P6.8 billion in 2017.