D&L Industries Inc. expects net income to grow by at least 10 percent this year as its new manufacturing plant started contributing to group’s earnings, president and chief executive Alvin Lao said Thursday.
Lao said in a news briefing volume is expected to pick up this year as overall macroeconomic conditions improve.
“On a macro level, there are at least three catalysts on the horizon to look forward to in 2024 – moderating inflation, prospects of lower interest rates and the planned implementation of a higher biodiesel blend by July,” Lao said.
The company’s Batangas plant, which opened in the July 2023, already surpassed its first-year export commitment to the Philippine Economic Zone Authority (PEZA), said Lao.
Lao said new plant served several orders for both local and export customers.
He said while 2023 was challenging year, the group started seeing positive signs as its high-margin specialty products (HMSP) posted positive volume growth In the fourth quarter of 2023. HMSP volume was up 40 percent year-on-year.
“With lower inflation and interest rate prospects, management is more optimistic in 2024. longer-term, the Batangas plant puts D&L in a very good position to capitalize on global recovery,” Lao said.
D&L reported that its recurring income reached P2.3 billion last year, down by 31 percent from 2022 on higher interest and depreciation expenses associated with the Batangas plant coupled with the lingering effects of high inflation in 2023.
Excluding the impact of these incremental expenses, 2023 earnings would have declined by just 15 percent year-on-year to P3 billion.
