D&L Industries, Inc. (DNL) expanded its recurring income by 14% to P784 million in the three months ending June, driven by higher volumes for the high margin specialty product (HMSP) segment of its food business.
The listed manufacturer of customized food ingredients and specialty raw materials said in a statement on Thursday, Aug. 9, that this pushed recurring income 13% higher to P1.53 billion in the first half of 2018. Revenues meanwhile stood at P13.2 billion, four percent higher year-on-year.
The earnings for the first half translate to an earnings per share of 21 centavos.
DNL attributed the profit growth to the 14% increase in volumes from the food unit鈥檚 HMSPs, which accounted for 63% of total revenues. The company noted the segment鈥檚 growth for the period is twice its historical average increase of seven percent.
鈥淭he pick-up in HMSP is encouraging as it represents the side of the business that is recurring and sticky,鈥 the company said. This allowed a two percent year-on-year increase for the food ingredients segment.
Shares in DNL rose 20 centavos or 1.89% to close at P10.76 each at the stock exchange on Thursday. — Arra B. Francia

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