D&L INDUSTRIES, Inc. posted a 25.8% increase in net income in 2022 to P3.32 billion from P2.64 billion a year earlier, driven by consumer spending and export growth.

“In 2022, we hit a new high in terms of net income,” said D&L Industries President and Chief Executive Officer Alvin D. Lao in a media briefing on Wednesday.

He said the company’s previous record income was in 2018 at P3.19 billion, which last year’s bottom line managed to beat by 4%

Last year, D&L’s topline rose by 41% to P43.49 billion from P30.85 billion in the previous year. It had a 49:51 sales mix of high-margin specialty products and commodity products.

Mr. Lao said the company’s revenues also hit an all-time high in 2022.

Food ingredients contributed 48% to revenues, followed by oleochemicals with 45%, specialty plastics with 7%, and consumer products with 0.4%.

D&L’s exports contributed 31% to revenues for the year, as these increased by 33% to P13.6 billion from P10.2 billion a year earlier.

Operating expenses grew by 48.5% to P1.96 billion from P1.32 billion in the previous year.

“We expect this to be even higher once the new plant is operating because the new plant is located in a [Philippine Economic Zone Authority] zone,” Mr. Lao said.

Facilities within economic zones are required to export at least 50% of production to avail of incentives, he added.

The company stated earlier that its new production plant in Tanauan, Batangas is set to begin operations in mid-2023, expanding the capacity of D&L’s food, oleochemicals, and consumer products.

Meanwhile, the company’s fourth-quarter 2022 net income surged by 62% to P777 million from P480 million. Revenues went up by 3% to P9.58 billion from P9.32 billion previously.

Cost of goods sold and cost of services decreased by 4% to P7.93 billion from P8.29 billion, while operating expenses grew 45% to P566 million from P391 million.

For 2023, D&L expects a lower capital expenditure (capex) budget as it finishes the construction of its Batangas plant, and no major spending is expected.

“[Capex] will be much lower than the last couple of years, probably even below P2 billion,” Mr. Lao said.

For 2022, the company allotted P3.5 billion for capex from the P3.18 billion allotted the previous year.

“The capex in 2022 is already lower compared to 2021 so it has already peaked, and the bulk of this is really for the expansion in Batangas,“ said Mr. Lao. — Adrian H. Halili