Publicly-listed D&L Industries is optimistic of a 10-percent income growth target this year, after its first three quarters' income rose 8 percent, boosted by strong volume growth.
In a briefing Wednesday, D&L Industries president and chief executive officer Alvin Lao said volume expanded by 11 percent on an annual basis in the first nine months this year despite the rise in coconut oil prices, the average of which surged 78 percent to date, allowing the company to book P1.95 billion income despite higher coconut prices.
Price of coconut oil, the key ingredient in D&L’s products, registered an all-time high of almost $3,000 per metric ton during the third quarter alone, he said, dampening the rise of the company’s overall blended margins.
Lao said “while we cannot control commodity price movements, we can control how we navigate these challenges and where we direct our focus and resources."
"In this volatile environment, we continue to stay true to our core —investing in R&D (research and development) and innovation. We believe these investments will enable us to develop higher-value, more technical, and differentiated solutions for our customers, helping insulate the business from macroeconomic volatility."
“We’re not that far away from the 10 percent target and we’re going to try our best to hit that,” he said, but added this still depends on several factors such as the growth of the domestic economy and the direction of coconut oil prices.
Lao also cited their export business posted a 20 percent rise in revenues to $11 billion as of end-September.
Profit from exports business inched up by 22 percent, way higher than the 8 percent expansion of their domestic business.
Lao declined to answer queries on their focused foreign market in the near term, but said they export to most continents, such as North America, the United States, Europe, Asia and the Pacific, and even Africa.
“For the rest of the year, we remain cautiously optimistic. While some customers continue to face pressure from elevated input costs, improving macro fundamentals —such as easing inflation and interest rates— should help spur economic activity,” he added.
D&L PHOTO
