Mid-sized raw material manufacturer D&L Industries Inc. managed to post a 9-percent net income growth in the first three quarters of 2015, despite a one-time expense meant to ensure financial flexibility, the publicly listed firm reported Tuesday.
For the first nine months, D&L posted a net income of P1.61 billion from P1.47 billion a year ago. The increase in profits was tempered by the P47-million worth of tax and fees incurred by the firm for the increase in its authorized capital stock.
In June, D&L approved a capitalization hike to P18 billion from P4 billion, eventually awarding shareholders with a 100-percent stock dividend and additional cash dividend of P0.15 per share.
Although falling short of analysts’ consensus profit forecast, D&L said the modest income growth was attained because of the strong performance of its business segments.
Being a holding company, D&L Industries operates four main businesses through its subsidiaries. The company manufactures specialty food ingredients, colorants and plastic additives, aerosol components, and oleochemicals.
Revenues edged down by 2 percent in January to September to P14.5 billion from P14.7 billion a year ago, despite an increase in sales volume of food raw materials, oleochemicals, and aerosols.
D&L Chief Financial Officer Alvin Lao said the lower revenue turnout was expected, due to the lower prices of commodity products.
Despite lower revenues, D&L’s recurring net income increased by 13 percent to P1.66 billion year-on-year, which translated to an earnings per share of P0.23.
D&L also improved its debt management, as the firm tapped a P1-billion bank loan carrying a 4 percent rate for five years. The long-term loan was used to partially settle short-term borrowings, therefore reducing net debt to P2.9 billion from P4.21 billion in 2014.