Metro Manila (CNN Philippines, May 5) — D&L Industries, a plastic and food input producer listed on the Philippine Stock Exchange, says it expects to continue regaining momentum this 2021 after an earnings increase of 35% in the first quarter.
In a virtual briefing on Wednesday, D&L president and chief executive officer Alvin Lao said net income in the January to March period rose to ₱695 million from ₱515 million in the same period last year.
The company’s sales also increased by 23% to ₱7 billion from last year’s ₱5.67 billion.
The listed firm also benefitted from the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, boosting its profit by ₱32 million. The law is part of the government’s tax reform program, which reduces corporate taxes from 30%, the highest in the ASEAN region, to 25% for large corporations, and 20% for small and medium enterprises earning ₱5 million a year.
But the performance of all its segments mainly propelled the growth, Lao said, noting all of D&L’s segments posted “significant recovery” in the period as businesses and consumers have adapted to the new normal arising from the coronavirus pandemic.
“Not just for the chemicals segment but also for the food ingredients space wherein many food companies are now better equipped to service customers on a 100% takeout or delivery basis,” Lao said in a disclosure.
The executive stressed that while fears remain, “there’s a lot more confidence now” in the market despite the reimposed modified enhanced community quarantine in the Greater Manila area.
“Unlike the ECQ/MECQ in 2020, this year’s ECQ/MECQ is much less restrictive… With the government’s stance to protect public health and with the gradual rolling out of vaccines, we believe that the same trend would likely be observed in the succeeding quarters,” Lao added.
D&L’s share price improved on the local bourse by 3.79% or 28 centavos to close at ₱7.66 each on Wednesday.
