March 20, 2020 – D&L Industries continues to fulfill its role in the Philippine manufacturing sector, remaining operational to prevent any disruption in the supply of raw materials in the food and sanitation chemicals industry. This comes amidst a challenging environment, with the entire Luzon Island recently placed under enhanced community quarantine.
“We’re working in less than ideal operating conditions right now, facing challenges in logistics, supply disruptions and reduced manpower. But as of now, we’re still able to maintain selected manufacturing capabilities, and I hope will continue to do so until the outbreak has been permanently contained,” remarked D&L President & CEO Alvin Lao.
While the company sources some of its raw materials from China and some delays are expected, it has already been able to find alternative suppliers. As of this writing, the company has ample inventory on hand with inventory days at over 100.
“I believe that as a good corporate citizen, it is our responsibility to keep our employees safe and make sure there are no major disruptions in manufacturing raw materials used in basic food items and sanitation products that are crucial during these times. The food ingredients that we manufacture go into canned goods, noodles, biscuits, and other shelf-stable snacks. We also manufacture sanitation chemicals such as alcohol, disinfectant spray, and sanitizer which are much needed due to current conditions,” Lao added.
As of this writing, D&L Industries remains COVID-19 free. The company has instituted strict precautionary measures to address employee health risks. Moreover, a work-from-home policy and staggered attendance scheme are currently in place.
In order to help its employees prepare and buy needed supplies for their homes, the company has already released half of the 13th month pay to employees last Tuesday, March 17. In addition, D&L will be paying salaries in full to all of its employees, until the end of the enhanced community quarantine on April 13.
“As a countermeasure, we are aligning resources to serve the increase in demand for immunityboosting food supplements, cleaning solutions, alcohol, and disinfectants. We’ll do whatever we can on our part and join with the public in this fight to contain COVID-19,” Lao continued. “While there are a lot of uncertainties at this point, and the food ingredients business will likely take a hit with slower demand from the hotel/restaurant/catering (HoReCa) sector, we are optimistic that we can weather this storm given our strong balance sheet.” The company’s net gearing currently stands at 8% and its interest cover at 18x.
D&L Industries is a Filipino company engaged in the manufacturing of customized food ingredients, specialty raw materials for plastics, and oleochemicals for personal and home care use. The company is also the manufacturer of Laurin® CocoMCT which is a coconut-derived immunity-boosting supplement rich in lauric acid that has antiviral and antibacterial properties. D&L is also the manufacturer of sanitation products such as Solbac disinfectant spray, Fresh Again alcohol, and Bactofree sanitizer.
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INVESTOR RELATIONS CONTACT
Crissa Marie U. Bondad
Investor Relations Manager- D&L Industries, Inc.
crissabondad@dnl.com.ph / ir@dnl.com.ph
+632 8635 0680