D&L Industries Inc. posted P1.03 billion in net profit during the first half of 2015, up 10 percent from a year earlier.
A one-time cost covering taxes and filings related to an increase in authorized capital last June weighed on profits, the food ingredients maker said.
The company approved an authorized capital increase to P18 billion from P4 billion to ensure financial flexibility moving forward, and eventually awarded shareholders with a 100-percent stock dividend and an additional cash dividend of P0.15 per share.
Without the one-time cost, D&L’s core profit would have grown by 15 percent to P1.35 billion.
Revenues increased by 10 percent, reflecting a slower growth on lower commodity prices – particularly in palm oil – which more than offset the higher volume of transaction in food ingredients, oleochemicals, and aerosols. High margin specialties accounted for 59 percent of revenues.
The company said food ingredients led the increase in volume growth and margin gains, on top of the solid performance of oleochemicals and other specialty chemicals. Aerosols managed to steer first half results to a gain despite the underperformance of the plastics segment.
D&L said the food ingredients, oleochemicals and aerosols did well in January to June, but the plastics business was still “held back by the port congestion” in second half of 2014 and the first half of 2015 that led to additional costs and missed sales opportunities.
Earlier, D&L Chief Financial Officer Alvin Lao said the company is “on track” to a consensus net income of P2.4 billion as analysts forecasted based on the encouraging performance of the company’s business segments.
Capital expenditures this year were still within the range of “10 to 20 percent above” the actual spending of P284 million in 2014, or about P320 million to P330 million.