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MANILA, Philippines – D&L Industries (PSE:DNL) has reported its nine-month financial results for 2016 and highlighted its 16 percent higher net income.
The company reached a net income of P1.93 billion, which is equivalent to P0.27 per piece. The climb is 16 percent higher than the previous year. In addition, earnings before interest and taxes increased by 18 percent and valued at P2.44 billion. The net income grew by 19 percent, which is inclusive of taxes and filings’ one-time value related to authorized capitalization hike in June 2015.
On the back of system-wide sales volume and higher palm oil and coconut oil prices, revenues increased by 10 percent in the third quarter. Returns include 61 percent of high margin specialties, which drove the overall gross returns from 17.8 percent to 18.7 percent. The return of equity is recorded at 19.4 percent, while its invested capital profit is 20 percent.
The second quarter for D&L Industries is strong – thanks to the compensation from the election and Easter holiday. Businesses are working the most during the second half of the year, which contributes to their returns. R&D investments also increased by 43 percent since 2012. The company now focuses on key opportunity segments, particularly in plastics, food ingredients, aerosols, and chemicals among others.
From June levels, inventories have dropped alongside working capital improvement. There is a generation of P787 million positive free cash in third quarter, while there is P160 million in the nine-month period. This is in contrast to negative free cash during the first half of 2016, which valued at P627 million.
The company continues its debt payments, leading to its third quarter record of lower borrowings. During the period, shareholders also had P1.43 billion in dividends from the company. Since listing in 2012, the total payout in dividends is worth P3.22 billion.
The net debt of the company as of September end is P2.45 billion, which is inclusive of 18 percent net and interest cover of 30x.