▪ Regular dividend of P0.161, Special dividend of P0.048
▪ Ex-date on June 18, record date on June 19, payment date on July 3
▪ Dividend yield of 3.3% based on last closing price of P6.28/sh
▪ Management remains highly committed to its dividend policy of 50% payout ratio based on prior year’s net income. This year’s dividend represents a payout ratio of 65%.
June 03, 2024 – D&L Industries declared today a regular cash dividend of P0.161 per share, plus a special cash dividend of P0.048 per share, to shareholders of record as of June 19. Ex-date is on June 18 and payment will be made within 30 days of the dividend declaration or on July 3.
Management remains highly committed to its regular dividend policy of a 50% payout ratio based on prior year’s net income. On top of that, for the fourth consecutive year since the peak of the pandemic in 2020, D&L was able to declare special dividends. This year’s special dividends amount to 15% of prior year’s net income. All in all, this year’s payout ratio remains at 65% of prior year’s net income, which is at par with the payout ratio in 2022 and 2023.
With the payout ratio being maintained, the lower earnings in 2023 resulted in lower total dividend per share of P0.209 this year compared to the P0.3 dividend per share declared last year. Nonetheless, this year’s dividend translates to a 3.3% yield based on May 31’s closing price of P6.28/sh.
In 2023, D&L booked P2.3 billion in net income or or earnings per share of P0.32. This is lower by 31% YoY largely due to higher interest and depreciation expenses associated with the commercial operations of the Batangas plant coupled with the lingering effects of high inflation last year.
In the 1Q24, however, earnings have started to recover with D&L posting a 4% YoY growth in earnings for the quarter to P618 million. This was mainly driven by the steady and consistent ramp up in operations of the Batangas plant. There was a marked improvement in the new plant’s operations with it almost breaking even for the first quarter of the year. From a peak of P315 million loss recorded during the third quarter of 2023, losses have narrowed drastically to merely P16 million in 1Q24. With the current run rate, it is possible that the plant may breakeven ahead of the initial schedule of at least two years since the Start of Commercial Operations.
As of March 2024, Natura Aeropack Corporation (NAC) and D&L Premium Foods Corp (DLPF), D&L’s wholly-owned subsidiaries operating the Batangas facility, have both surpassed their first year export commitment with PEZA. Combined, the two subsidiaries have delivered 230% of their export commitment to date.
Barring any unforeseen event, D&L’s management is keeping its stance and continues to guide for at least double-digit growth in earnings for this year. Over the longer-term, D&L has a lot of confidence that the new investments that were made over the past years will pave the way for a higher and more sustainable profit growth.
Including this year’s payment, the Company has returned a total of P16.8 billion in cash to shareholders through dividends since the IPO in 2012. The company also paid a 100% stock dividend in September 2015.
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D&L Industries is a Filipino company engaged in product customization and specialization for the food, chemicals, plastics and consumer products ODM industries. The company’s principal business activities include manufacturing of customized food ingredients, specialty raw materials for plastics, and oleochemicals for personal and home care use. Established in 1963, D&L has the largest market share in most of the industries it serves, as well as long-standing customer relationships with the Philippines’ leading consumer and manufacturing companies. It was listed on the Philippine Stock Exchange in December 2012. For more information, please visit https://www.dnl.com.ph/investors/.
This press release may contain some “forward-looking statements” which are subject to a number of risks and uncertainties that could affect D&L’s business and results of operations. Although D&L believes that expectations reflected in any forward-looking statements are reasonable, D&L does not guarantee future performance, action or events.
INVESTOR RELATIONS CONTACT
Crissa Marie U. Bondad
Investor Relations Manager – D&L Industries Inc.
+632 8635 0680
crissabondad@dnl.com.ph / ir@dnl.com.ph