After Philippine government policies had steadily relaxed, D&L Industries, Inc. had a Q4 net income of P327 million for the end of 2019.
Really, what I want to point out is the outstanding fourth quarter results. Net income was up by 8% in the last quarter of last year, and 11% in the first quarter. D&L president Alvin Lao said in an online press briefing on Wednesday that our net income has nearly returned to pre-inflation levels.
At the end of 2019, the firm earned P590 million net profits. It will report income of P573 million in the third quarter of 2020.
That indicates a real turn for the better, Mr. Lao explained.
The net profit was stable at P5.82 billion, although the gross margin decreased by 2.4%
The organization stated that its non-food divisions had already outperformed prior to the 2019 coronavirus disease outbreak.
Chemicalrez, ODM (original concept manufacturer) account for[s] for[ed] for 75% of fourth-quarter profits.
Local quarantines were relaxed so that sectors such as transportation and manufacturing could return to work, and demand for biodiesel and construction-related goods increased as a consequence.
The ODM commodity division of D&L, formerly known as the aerosol division, did well as well. year after year, the business saw stronger demand for items such as alcohol-based disinfectants and sanitizers
As a result, the need for “plastic chemicals and colorants” has increased, the company’s turnaround is a temporary.
More and more consumers have taken to owning their own vehicles in recent years.
The company noted that on the one hand, on the other, the crisis has increased people’s interest in buying cars, particularly given the threat of virus exposure while utilizing public transportation.
Conversely, food division revenue increased by 7% in the fourth quarter, as the Quarantine regulations were lifted. While, D&L acknowledged that the segment’s year-on-year results were only 45% of their previous year’s results.
Full-year net profits decreased to P2.01 billion (23%) in 2019 and decreased to P1.02 billion (total) in 2020.
Sale revenues fell by 3% to P21.74 billion, and gross profit was reduced by 15% to P3.74 billion.
Despite these deficits, the group is staying optimistic as it produced a positive cash flow last year.
We became stronger in our long-term plans because of these exceptional circumstances.” Due to the strong relevancy of our companies, our financial competence even through a lockdown, the firm never saw a negative revenue,” Mr. Lao commented in his statement.
He also mentioned that the firm expects to gain the same profits in 2019.