Metro Manila (CNN Philippines, November 8) — D&L Industries Inc., a listed food ingredients and plastics manufacturing company, saw its earnings decline by 29% to ₱1.8 billion due to a “challenging” market, but its export business is seen to grow with the opening of its new plant.
In a disclosure Wednesday, the company attributed the drop in profits to the persistently high inflation coupled with extra costs related to the commercial operations of its Batangas plant. Excluding the new facility, its bottomline would stand at ₱2.3 billion.“While incremental expenses are more apparent at the start of operations of a new plant, we have confidence that this will be a huge benefit to the company, as what we have seen multiple times over the past 60 years,” said Alvin Lao, president and CEO of D&L Industries.“Our Batangas plant will allow us to explore opportunities that were previously beyond our existing capabilities. With the new plant, we will open new markets, expand our range of higher value-added products,” he added.With the Batangas plant now operational, Lao sees the group’s export sales to account for at least 50% of D&L’s topline in the long-term.
