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D&L Industries announces P0.24 per share dividend for 2022

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. 

-end-

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