LISTED raw food materials maker D&L Industries Inc. has revised upwards its income target for 2014 following its strong earnings in the first nine months.
Alvin Lao, D&L chief financial officer, told reporters in a briefing that the company is now targeting net profit growth of 22 to 26 percent for the whole year, up from the original projection of 18 to 22 percent growth.
“We have grown quite significantly on a quarterly basis by 60 percent in revenues, and we have increased our net income by 24 percent in nine months, driven by our high-margin specialty products,” Lao said.
“We’re on track to perform well above last year’s performance,” he added.
Lao also said that with the recent acquisition of Chemrez Technologies Inc. and the company’s partnership with Ventura Foods, D&L expects revenues to be higher in the next few quarters.
For the January to September period, D&L’s net income rose 24 percent to P1.29 billion from P1.04 billion last year. Revenues likewise surged 38 percent to P10.62 billion from P7.68 billion a year ago.
In the third quarter, D&L’s net income advanced 28 percent to P494 million from P422 million last year on strong sales, while revenues went up 60 percent to P4.4 billion compared to a year ago.
The company mostly offers consumer specialty products. Its revenue contributors following the Chemrez acquisition are: food ingredients (50 percent); special plastics (10 percent); aerosols (2 percent) and Chemrez Technologies (34 percent).
Chemrez is now 99.97 percent owned by D&L following the completion of its tender offer for the coco biodiesel producer last October. Chemrez produces biodiesel products for fuel consumption (50 percent share), specialty oleo for soaps (14 percent), and specialty chemicals for paints and appliances (36 percent).
D&L was earlier reported as saying it would most likely cause the voluntary delisting of Chemrez with the latter’s public ownership having fallen below the minimum 10 percent required by the Philippine Stock Exchange (PSE).
For its partnership with vegetable oil-based products maker Ventura Foods, Lao said the company will distribute Ventura’s formulations in the initial parts of the venture, which can change overtime given the abundance of cheaper oils readily available in the region compared to the more expensive oils used in the United States.