MANILA - Food ingredients and chemicals manufacturer D&L Industries said Tuesday net income was little changed in the second quarter, citing the absence of election-related spending.
Net income in the April to June period edged up 1 percent to P688 million, as an increase in the cost of goods sold, operating expenses, and interest expense offset a 14-percent jump in sales for the period.
This brought first half net income to P1.35 billion, up 7.5 percent from the same period in 2016.
Food ingredients contributed 36 percent of income, followed by units Chemrez Group with 31 percent and Specialty Plastics with 24 percent.
Exports grew 64 percent in the first half, boosting hopes that it would soon contribute half of the company's total revenue from the current 23 percent, D&L president and CEO Alvin Lao said.
“This is welcome very much, by being strong in exports, we have the advantage of having a natural edge against currency fluctuation or a weakening peso. Another edge is if the domestic economy slows down, exports will not be affected as much and we will still see growth in the company.”
The country's infrastructure problem, which the government is addressing with a P8-trillion building program, could slow growth, he said.
“I believe there are some projects started already, but questions about them: is it enough? Will it come on time? There’s a little bit of uncertainty for all projects, will gov’t be able to borrow at low rates? Will the tax reform program come out when they (are supposed) to come out?” he said.
Lao said the company was planning to build a manufacturing plant within an export zone outside Metro Manila.