Batangas: An official of specialty food and chemical producer D and L Industries expressed optimism for their business this year amid challenges of rising coconut oil prices and impact of external developments. In the first nine months this year, the company booked a net income of PHP1.95 billion, 8 percent up from year-ago's PHP1.81 billion, achieved amid the volatility caused by coconut oil price upticks, among others, Alvin Lao, D and L president and chief executive officer, said during an online briefing hosted by the Philippine Stock Exchange (PSE) Friday.
According to Philippines News Agency, Lao traced their resilience partly to the contribution of their plant in First Industrial Township-Special Economic Zone in Tanauan City, Batangas, which was opened in 2023. He said their newest plant sits on a 26-hectare land, double than their previous plant in Quezon City, and this allows the company to increase production and address the issue about capacity in the past.
'So, that's something over next couple of years, we anticipate, will definitely improve in terms of the growth in exports, because we do have the capacity currently in terms of where we export,' he added. To date, the company exports to several areas such as North America, Europe, Asia Pacific, Europe, Australia, New Zealand, Africa, the Middle East, and the US, with share of the latter in their total exports accounting for 'a fairly small' part, thus a limited impact in terms of US' new trade policies.
Exports contributed a significant share in the company's profits in the first nine months this year, rising 22 percent to PHP1.9 billion, against the 8 percent increase in profits from domestic operations to PHP3.4 billion. With improved capacity to produce more due to their bigger factory in Batangas, Lao said they continue to join more trade shows and exhibitions overseas to gain wider market access.
'This was something that we could not really do in a big way before because we didn't have the capacity, but now that we do have the capacity, so that's what we are currently doing to grow our exports,' he added.
