D&L Industries Inc. expects earnings to exceed P1 billion in the second half of the year.
Alvin Lao, D&L president, said current trends point to a “better than what we thought” result for the latter of the year, with clienteles recovering faster, particularly non-food manufacturing.
Lao said the company’s oleo-chemicals business is benefiting from increased mobility which is translating to bio-diesel sales. Its specialty plastics is benefiting from the reopening of the global economy which is boosting sales to export-oriented automotive companies.
The pandemic likewise accelerated the adoption of the health and wellness trend, and this has allowed sales of specialty products related to personal care, organic cleaning products and disinfectants to grow.
Demand for plastics used for packaging also enjoyed stronger demand as consumers preferred using single use plastic over washable items because of sanitation.
“The third quarter is definitely better than the second quarter where operations of some customers were practically zero. The fourth quarter will be hard to say because there may not be Christmas parties although new COVID-19 cases are not rising while there seems to be fewer serious cases than before,” he said.
Lao noted that D&L is more optimistic about 2021 as it is generally expected that economies worldwide will continue to recover next year.
With this, D&L is not reducing its capital expenditures as it continues the construction of new manufacturing plants in Batangas and is on track to complete the facilities by the end of next year, Lao said.