June 06, 2022 – D&L Industries declared today a regular cash dividend of P0.185 per share, plus a special cash dividend of P0.055 per share, to shareholders of record as of June 21. Ex-date is on June 16 and payment will be made on July 15.
Management remains highly committed to its dividend policy of a 50% payout ratio based on prior year’s net income. D&L has also been able to declare special dividends for two years in a row now since it was paused in 2020 due to the uncertainties brought about by the COVID-19 pandemic.
In total, shareholders will receive a P0.24 dividend per share, or a dividend yield of 3.6% based on June 3’s closing price of P6.75. This year’s dividend amounting to P1.7 billion or an increase of 26% from last year’s P1.4 billion, is equivalent to 65% of last year’s recurring income.
In 2021, D&L booked P2.6 billion in net income. This is ahead of the pre-pandemic income recorded in 2019, despite stricter mobility restrictions in place for the majority of the year. The positive earnings momentum continued in the first quarter of 2022 with D&L’s earnings at P780 million which was up 12% YoY, up 63% QoQ, and above pre-COVID income levels booked in 1Q19 and 1Q18. 1Q22 earnings represent the highest quarterly income level for the company in three years despite the Omicron surge in January and soaring commodity prices caused by the ongoing conflict between Ukraine and Russia.
The strong earnings growth was mainly driven by the continued reopening of the Philippine economy and the implementation of a lower alert level. Consumer confidence and mobility continue to pick up as evidenced by the gradual return to normal of road traffic, dining in restaurants, and activity of both domestic and international flights.
D&L Industries stands to benefit from the gradual return to normalcy as higher economic activity typically translates to better business for the company. Given the recovery in the domestic economy and the company’s growing export business, D&L’s expansion facility in Batangas which will be operational by January 2023 appears to be coming at an opportune time. The new plant will give D&L additional capacity and upgraded capabilities which will position the company for long-term growth and will enable the achievement of strategic priorities. Barring another unforeseen event, simply annualizing the company’s 1Q22 earnings will yield a projected P3.1 bn in net income for the year, which is already at par with its record net income booked in 2018.
Including this year’s payment, the Company has returned a total of P13.2 billion in cash to shareholders through dividends since the IPO in 2012. The company also paid a 100% stock dividend in September 2015.
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
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