D&L Industries says exports to account for half of total revenue in next two to three years.
D&L Industries, Inc. said it expects its export business to make up half of its total revenue in the next two to three years, driven by its new Batangas plant.
“Maybe it will take us another two or three years before we hit 50% (of total revenue contributed by exports),” D&L President and Chief Executive Officer Alvin D. Lao said during a virtual briefing on Monday.
He said that exports currently account for 32% of the company’s total revenue, which is expected to reach “mid to high 30%” by the end of the year. D&L’s export revenue rose by 39% in the first quarter.
“As the Batangas plant’s operation increases, then we will be exporting more. It ramps up over time,” Mr. Lao said.
D&L started the Batangas plant’s commercial operations last year.
The plant saw a P16-million net loss in the first quarter, lower than the P315-million net loss incurred at the start of its commercial operations.
Mr. Lao said the company is keeping its projection of at least double-digit earnings growth this year.
“Barring any unforeseen events, we maintain our stance and continue to guide for at least double-digit growth in earnings for this year,” he said.
“Over the long term, we have a lot of confidence that the new investments that we have made over the past years will pave the way for higher and more sustainable profit growth,” he added.
In a separate statement, D&L announced a regular cash dividend of P0.161 per share, along with a special cash dividend of P0.048 per share, for shareholders recorded as of June 19. The ex-date is June 18, and payment will be made within 30 days of the dividend declaration, or on July 3.
D&L reported a 4% increase in first-quarter net income to P618 million, with sales growing by 5% to P8.83 billion.
On Monday, D&L stocks rose by 1.43% or nine centavos to P6.37 apiece. — Revin Mikhael D. Ochave
