FOOD ingredients and specialty plastics manufacturer D&L Industries Inc. posted record earnings in 2014 on the back of strong sales, with net income breaching the P2 billion mark and revenues hitting more than P20 billion.
This is the “first time the company exceeded the P20 billion mark for revenues and P2 billion for net income,” Alvin Lao, D&L chief financial officer (CFO), said in a briefing, adding that bottom line was also boosted by the consolidation of Chemrez Technologies Inc. into its books.
D&L’s met income went up 27 percent to P2.03 billion from 2013’s P1.6 billion as revenues increased 39 percent to P20.5 billion from P14.8 billion.
In the fourth quarter of last year, D&L netted P557 million —37 percent higher than in the same quarter of 2013 and 3 percent more than the third quarter of 2014.
Fourth quarter revenues reached P6.2 billion, up 51 percent year-on-year and 12 percent higher than the third quarter of 2014.
Fifty percent of revenue came from food ingredients while specialty plastics and Chemrez contributed about 44 percent of sales, while aerosols added a 6 percent share.
Last year, the company’s exports rose 33 percent from the previous year and consisted mostly of food ingredients, specialty plastics and Chemrez exports.
Capital expenditures (capex) for the full year increased to P284 million from P234 million in 2013.
Lao said capex for 2015 is expected to be “10 to 15 percent above” the actual spending in 2014, which would amount to about P320 million to P330 million.
The D&L CFO said analysts’ consensus net income forecast of P2.4 billion for this year “is achievable” given the expected growth across its businesses.
However, he said revenues may be lower this year on the lower prices of raw material commodity products although this should not hit D&L significantly as growth is mostly based on volume production.
Chemrez is now 99.97 percent owned by D&L after D&L’s buyout last year and was effectively delisted from the stock exchange on January 10.
It produces biodiesel products for fuel consumption (50 percent share), specialty oleo for soaps (14 percent), and specialty chemicals for paints and appliances (36 percent).
In partnership with vegetable oil-based products maker Ventura Foods, the company is set to export products within the Asia Pacific focusing on specialty fats and ingredients.
Ventura Foods is a US-based maker of branded and custom-made products which include frying oils (Mel-Fry and Extend), dressings and culinary bases (Marie’s and Classic Gourmet), butter blends (SunGlow), liquid butter alternatives (Phase, Savory), pan coatings (White Cap and Gold-n-Sweet), buttery spreads (Smart Balance) and prepared dressings (Hidden Valley).
Established in 1963 and listed in December 2012, D&L has four main businesses: food ingredients (Oleo Fats Inc), specialty plastics (D&L Polymer and Colours Inc. and First in Colours Inc.), aerosols (Aero-Pack Industries Inc.), and chemicals (Chemrez Technologies).