D&L Industries Inc. is optimistic of exceeding its 2019 profitability as quarantine restrictions in the National Capital Region and its surrounding provinces ease.
Alvin Lao, D&L president, told shareholders yesterday the company is confident it will continue on its growth track for the year after it posted 35 percent growth in recurring income in the first quarter at P695 million.
Including a one-time gain of P29 million related to the retroactive implementation of CREATE Act for the year 2020, the company posted a reported profit of P724 million, up 41 percent, with all of the company’s business segments recording year-on-year growth.
Lao said the first quarter figures “seem to be tracking ahead of 2019 income” but still slightly behind the 2018 figures.
“Assuming that the first quarter income holds steady in the next couple of quarters, the company is set to at least reach its net income level in 2019,” Lao said.
D&L on Monday declared a regular cash dividend of P0.141 per share and a special cash dividend of P0.05 per share to shareholders on record by June 16, 2021. Payment is on July 15, 2021.
Lao said D&L “remains highly committed to its dividend policy of a 50 percent payout ratio based on prior year’s net income.”
“In addition, the company has resumed payment of a special dividend after it was paused last year due to the uncertainty brought about by the COVID-19 pandemic. While challenges brought about by the pandemic remain, management believes that with appropriate adjustments and operational contingencies already in place, D&L is in a far better position to thrive in an adverse environment and a potentially protracted economic recovery period,” he added.
Lao said that including this year’s payment, D&L has returned a total of P11.5 billion in cash to shareholders through dividends since its initial public offeirng (IPO) in 2012. The company also paid a 100 percent stock dividend in September 2015.
Company shareholders meanwhile approved a plan for D&L to raise P5 billion through a bond sale. The company has yet to finalize the terms of the bonds.
