MANILA, Philippines — Despite growing uncertainties due to the global trade war, food ingredients and plastic manufacturer D&L Industries Inc. is banking on its export market to drive growth, saying that the US market accounted for only 3 percent of its revenues.
While the tariff escalation has noticeably soured global business sentiment, D&L president and CEO Alvin Lao told reporters on Tuesday afternoon that they had other export markets apart from the United States, “so we have 97 percent of our revenues that are not affected by [
US President Donald] Trump.”
In the first quarter, D&L booked a 10-percent gain in its bottom line to P681 million on export growth and increased operations at its Batangas manufacturing plant.
In a stock exchange filing on Wednesday, the company said its sales had soared by 62 percent to P14.3 billion. This was due to a 69-percent surge in export sales to P4.8 billion, defying global uncertainties.
“While volatility is likely to persist in the near-term, we remain unfazed and continue to focus on building resiliency and long-term growth strategies,” Lao said.
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“We believe that with our product portfolio, the majority of which cater to basic and essential industries, we will continue to grow and be relevant in an ever-changing business environment and world trade order,” the CEO added.
Currently, exports account for 34 percent of total sales. D&L aims to widen this to 50 percent in the medium-term.
Domestic sales, meanwhile, swelled by 58 percent to P9.4 billion on the back of higher commodity prices.
The company’s
Batangas plant
, which started operations in July 2023, accounted for half of its total bottom line at P333 million, up by 35 percent.
“This positive momentum gives the company the confidence that, over time, its industry leading facilities in Batangas will continue to play an increasingly significant role in boosting its overall net income,” D&L said in its disclosure.