LISTED specialty food ingredients and oleochemicals manufacturer D&L Industries, Inc. said it expects to sustain profitability as it remains on track to meet its target of having export sales account for 50% of total revenue over the medium term.

D&L President and Chief Executive Officer Alvin D. Lao said during a virtual media briefing on Monday that the company’s cash flow is expected to remain “healthy” as it continues to expand its presence through trade shows and exhibitions.

“As part of the efforts of ramping up production in our Batangas plant, we’re focusing on exports. Because of that, we are visiting clients in other countries, attending trade shows and exhibitions, to try and drum up business. Because of that, we are able to get new clients in new markets all the time,” Mr. Lao said.

Mr. Lao also said D&L is on track to reach its goal of having exports account for at least 50% of total sales in the medium term. The company announced the target last year.

“With the new capabilities and capacity that the Batangas plant brings, D&L reasonably expects that we will be able to achieve its goal of having exports account for at least 50% of total revenues in the next couple of years,” he said.

“While global uncertainties seem to be the dominant theme affecting business sentiment in the near term, we remain unfazed and continue to focus on building resiliency and long-term growth strategies,” he added.

In a regulatory filing, D&L announced a regular cash dividend of P0.164 per share, plus a special cash dividend of P0.049 per share, to shareholders of record as of June 18. The ex-date is on June 17, with payment scheduled for July 2.

“This year’s payout ratio remains at 65% of prior year’s net income, consistent with the payout ratio over the past three years,” it said.

D&L said it remains committed to its regular dividend policy of a 50% payout ratio based on prior year’s net income.

For the first quarter, D&L’s net income rose by 10% to P681 million, led by higher contributions from the Batangas plant. Sales climbed by 62% to P14.27 billion, as export sales surged by 69% to P4.8 billion on increased volume.

D&L shares were unchanged at P5.64 apiece on Monday. — Revin Mikhael D. Ochave