D&L Industries, Inc. Announces P0.209 Per Share Dividend for 2024

D&L Industries, Inc. declared 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.

The management is still steadfastly committed to paying out 50% of net income as dividends on a regular basis, per the previous year's net income. In addition, D&L was permitted to declare extraordinary dividends for the fourth year in a row since the pandemic's peak in 2020. The special dividends for this year represent 15% of net profits from the previous year. Overall, the payout ratio for this year is still 65% of net income from the previous year, which is comparable to the payout ratios for 2022 and 2023.

The lower earnings in 2023 led to a smaller total dividend per share of P0.209 this year compared to the P0.3 dividend per share announced last year, provided that the payment ratio was maintained. However, the payout this year represents a 3.3% yield based on the closing price of P6.28/sh on May 31.

D&L reported P2.3 billion in net income, or P0.32 per share, in 2023. This is 31% less YoY, mostly because of the residual effects of last year's high inflation and increased interest and depreciation costs related to the commercial operations of the Batangas plant.

However, Q124 saw a recovery in earnings, with D&L reporting a 4% YoY increase in earnings to P618 million for the quarter. The Batangas plant's gradual and uniform ramp-up in operations was the primary driver of this. The new plant performed far better than before; in the first quarter of the year, it nearly broke even. After reaching a P315 million loss in the third quarter of 2023, losses have significantly decreased to just P16 million in the first quarter of 2024. The plant may break even sooner than expected at the present run rate, which is at least two years from the start of commercial operations.
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D&L's wholly-owned subsidiaries, Natura Aeropack Corporation (NAC) and D&L Premium Foods Corp. (DLPF), which run the Batangas facility, have both exceeded their first-year export target with PEZA as of March 2024. The two subsidiaries together have fulfilled 230% of their export commitment thus far.

D&L's management is standing by its forecast of at least double-digit growth in earnings this year, barring any unanticipated circumstances. Longer term, D&L is very confident that the new investments made in the last several years will open the door to more profitable growth that is both higher and more stable.
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Since the IPO in 2012, the company has paid out P16.8 billion in dividends to shareholders, including this year's distribution. In September 2015, the corporation also distributed a 100% equity dividend.

D&L Industries, Inc. 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.