D&L Industries, Inc. remains committed in its efforts to complete its First Industrial Township (FIT) expansion plan in Batangas despite experiencing delays due to the new round of pandemic lockdown.
“We remain committed to this expansion which is deemed to come at an opportune time as this will mainly cater to D&L’s growing export business in the food and oleochemical segment,” Alvin D. Lao, president and chief executive officer of D&L, said during the company’s stockholders’ meeting on Monday.
D&L’s key strategies include ramping up its export business to complement domestic operations. The company said the plant will be instrumental in its future growth as it develops more coconut-based products and as it dips into new international markets.
The company is still assessing the completion date of the plant expansion, after experiencing equipment and supply chain shipping delays due to the new round of pandemic lockdowns in the country.
It will give further information on the plant’s production capacity and other details in the coming months.
Despite this, D&L is confident it can still meet demands despite the hiccup in construction.
“Even if the construction is delayed, mukhang (it looks like) our existing facilities are able to cater to our current requirements and so from an operational perspective, the delay is not going to be that significant for us,” Mr. Lao said in a press briefing.
The company’s stockholders also approved of its plan to issue peso-denominated fixed-rate bonds worth P3 billion, with an oversubscription offer of up to P2 billion.
D&L is aiming to issue the bonds in the first or second week of September, subject to regulatory approvals. Proceeds from the offer will be used to help finance constructions in D&L’s Batangas plant.
The listed manufacturing company’s net attributable income rose by 35% to P694.9 million in the January-to-March period from P514.56 million last year.
“Assuming that first quarter 2021 income holds steady in the next couple of quarters, the company is set to reach its net income level at least in 2019,” Mr. Lao said, adding that the company’s balance sheet remains in a good position to withstand external shocks.
On Monday, shares of D&L at the stock exchange closed higher by 1.39% or 11 centavos at P8.05 each. — Keren Concepcion G. Valmonte