Despite the fresh round of pandemic lockdown, D&L Industries, Inc. is dedicated to completing its First Industrial Township (FIT) growth plan in Batangas.
“We remain dedicated to this development, which is believed to come at an appropriate moment since it will primarily serve to D&L’s increasing export business in the food and oleochemical segments,” Alvin D. Lao, president and CEO of D&L, said at the company’s shareholders’ meeting on Monday.
One of D&L’s primary initiatives is to expand its export business to supplement its local activities. The factory, according to the firm, will be critical to its future development as it creates additional coconut-based products and expands into new foreign markets.
After facing equipment and supply chain shipping delays as a result of the country’s latest round of pandemic lockdowns, the firm is currently estimating the completion date of the facility expansion.
In the next months, it will provide further information on the plant’s production capacity and other features.
Despite this, D&L is sure that it will be able to satisfy demand despite the construction snag.
“Even if the development is delayed, mukhang (it seems) our present facilities are adequate to cater to our present needs, so the delay will not be that problematic for us,” Mr. Lao stated at a news conference.
The company’s shareholders also authorized a proposal to issue P3 billion in peso-denominated fixed-rate bonds, with an oversubscription offer of up to P2 billion.
Subject to regulatory clearances, D&L plans to issue the bonds in the first or second week of September. The offer proceeds would be utilized to assist fund building projects at D&L’s Batangas facility.
From January through March, the listed manufacturing company’s net attributable income increased by 35% to P694.9 million from P514.56 million the previous year.
“Assuming that first quarter 2021 income maintains stable in the next quarters, the firm is on track to attain its net income level at least in 2019,” Mr. Lao said, adding that the business’s financial sheet is strong enough to absorb external shocks.