D&L sees better biz in Q3

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D&L Industries Inc. sees better business in the third quarter of the year as lockdowns ease though still below pre-quarantine levels.

“A reasonable recovery might be more probable in the fourth quarter as Christmas sets in as early as September,” said Alvin Lao, D&L president.

Lao said after experiencing the worst month in April, demand picked up in May and further improved this month.

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Lao said exports remained resilient, particularly for coconut-based products
due to their perceived natural antiviral and antibacterial properties.

“The company sees continued strong coconut oil exports, which should offset some of the weakness in the domestic market in the near term,” Lao said.

“The company plans to capitalize on this trend as it develops more products and penetrates more markets globally,” he added.

Lao said the opening of more food establishments should translate to better volume for the D&L’s food ingredients business, which saw a significant drop in demand from the hotel/restaurant/caterer sector during the first few months of the quarantine.

“In addition, the resumption of construction activities and public transportation, albeit on a limited scale, should help recover some lost volume in the other specialty chemicals and biodiesel segments under Chemrez,” Lao also said.

“We saw steep declines in most of our businesses in the first quarter when we only had two weeks of quarantine. It is likely that the second quarter will not be any better considering strict lockdown measures were in effect for the months of April and May,” Lao said.

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