D&L Industries reported profit of P515 million in the first quarter of the year, down 31 percent from P748 million in the same period in 2019.
Revenues reached P5.7 billion, down 3 percent from P5.88 billion last year.
“The COVID-19 (new coronavirus disease 2019) pandemic has disrupted many aspects of our daily lives and how businesses operate. Just like any other crisis that we’ve gone through in the past, this is also an opportunity for our business to build long-term resilience,” said Alvin Lao, D&L president
The country’s largest specialty foods ingredients, plastics and oleochemicals firm said sales volume for food ingredients rose 22 percent, mostly for commodities such as edible oils, as consumers cooked more at home instead of buying from restaurants.
Aerosol volumes went up 12 percent due to higher sales for disinfectants and other cleaners while exports went up 12 percent to P1.3 billion from P1.1 billion in the first quarter of 2019 due to higher demand for coconut oil-based products after coconut oil has been noted for its anti-viral properties.
Lao said D&L is “fundamentally equipped” to weather the economic challenges of COVID-19 given its strong balance sheet and the essential nature of the businesses its in, which should see continued demand even in this challenging environment.
“Additionally, our extensive investments in R&D (research and development) will allow us to reinvent ourselves and pursue opportunities that may have high value-added potential in the current situation,” he said.
Lao said the worst may have been over as supply chains have been restored while its customers, such as restaurant chains and manufacturers, have adapted to the changed environment and have slowly resumed operations.
“We are committed to our Batangas expansion, as we see its long-term investment merits remaining intact,” he said.
Lao, however, said the capital expenditures for and the construction of the project have been moved by about three months as work has been suspended during the enhanced community quarantine.
“In our view, the current market sell-off is a limited window of opportunity for shareholders who, like us, seek long-term value,” he said.
