LISTED customized food ingredients and oleochemicals company D&L Industries announced on Monday that its board of directors has approved the payment of P1.43 billion in dividends this year, an increase of 167 percent from last year.
At the company’s stockholders’ meeting, the board of directors announced that D&L will be paying regular cash dividend of P0.16 a share plus a special cash dividend of P0.04 per share, payable to shareholders on record as of June 20.
The ex-dividend date is on June 15 and payment will be made on July 8.
In sum, shareholders will receive dividend of P0.20 per share, or a dividend yield of 2.1 percent based on the June 3 closing price of P9.65 apiece.
This year’s dividend is equivalent to 63 percent of last year’s recurring net income.
D&L Industries is a Filipino company engaged in product customization and specialization for the food, chemical, plastics, and aerosol industries. Its principal business activities include manufacturing of customized food ingredients, specialty raw materials for plastics, and oleochemicals for personal and home care use.
Last year, its recurring net income, or income derived from its main operations, reached P2.28 billion, representing earnings per share (EPS) of P0.32, up 12 percent year-on-year, as sales volume for high-margin products continued to increase.
Return on equity and return on invested capital were at 17.9 percent and 20.3 percent, respectively.
For the first quarter of 2016, net income increased by 12 percent to P576 million compared to the same period last year, equivalent to EPS of P0.08. Return on equity and return on invested capital stood at 17.3 percent and 20.2 percent, respectively.
With minimal capital expenditure needs in the mid-term, improving returns, very low net borrowings, and good cash flow generation, D&L said it remains highly committed to driving shareholder value, with the dividend payout policy increased from 25 percent to 50 percent of the previous year’s recurring net income and an option to declare special dividends.
Including this year’s payment, D&L has returned a total of P3.22 billion in cash to shareholders through dividends since its initial public offering in 2012. The company also paid a 100 percent stock dividend in September 2015.