D&L Industries Inc., the country’s largest specialty foods ingredients, plastics and oleochemicals firm, is expecting its earnings in to exceed P1 billion in the second half of the year to over P1 billion from the earlier targeted P900 million to P1 billion.

In an online press interview, D&L President Alvin D. Lao said “Indications are it would be better than what we thought” and noted that their customers customers are recovering faster, particularly non-food manufacturing, after the tight lockdown imposed in the second quarter due to the pandemic.

Lao noted that, while Metro Manila reimposed the more stringent modified enhanced community quarantine for two weeks last month, most of their customers were better prepared and continued to operate.

During the MECQ, D&L’s customers were able to generate revenues by tapping online sales and delivery channels. Its oleo-chemicals business is benefiting from increased mobility which is translating to bio-diesel sales while its specialty plastics is benefiting from the reopening of the global economy which is boosting sales to export-oriented automotive companies.

Meanwhile, the pandemic has accelerated the adoption of the health and wellness trend, and this has allowed sales of specialty products related to personal care, organic cleaning products and disinfectants to grow.

Demand for plastics used for packaging also enjoyed stronger demand as consumers preferred using single use plastic over washable items because of sanitation.

“The third quarter is definitely better than the second quarter where operations of some customers were practically zero,” he said adding that, “the fourth quarter will be hard to say because there may not be Christmas parties although new COVID-19 cases are not rising while there seems to be fewer serious cases than before.”

He noted that, they are more optimistic about 2021 as it is generally expected that economies worldwide will continue to recover next year.

Because of this, Lao said D&L is not reducing its capital expenditures as it continues the construction of new manufacturing plants in Batangas and is on track to complete the facilities by the end of next year.

Despite the unprecedented disruptions brought by the pandemic, D&L believes that the company is fundamentally equipped to weather the current crisis, given its strong balance sheet and the essential nature of its various businesses, which should see continued demand even in this challenging environment. The company remained profitable even during the peak of the lockdown in April when Metro Manila was under 100 percentEnhanced Community Quarantine (ECQ), and did not have any month in the second quarter where net income was negative, for any of its main business categories.(