D&L Industries, Inc. (DLNDY) Q2 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone. Hi, everyone. Hi, everyone. Good morning. Welcome to the second quarter briefing of D&L Industries. Here with us today is Mr. Alvin Lau, President and CEO of D&L Industries, to discuss the results. Without further ado, I now turn over the floor to Alvin. Hi, everyone. Good morning. Today we'll be disclosing our first half results for 2024. So straight to the highlights, we're happy to report that for the first half of the year, we had net income increase by 6% compared to last year. Actually, on a quarter-on-quarter basis, we're doing quite well with net income up by 13%. So this is second quarter of the year versus first quarter of this year as well. And we have other highlights such as our high margin specialty products volume or HMSP volume is up by 33%. And this is the fourth consecutive quarter that volume is up for this segment of our business. Export sales are also doing well with contribution to sales at 33%, which matched our record high that was hit a couple of years ago. And we're seeing fairly stable raw material prices. And together with lower capex, it's resulted in free cash flow of 2.4 billion pesos for the first half of the year, which is more than double the free cash flow from the whole year last year. And just the last bullet point there, we are still quite confident that we are going to hit our net income target of 10%, at least 10% earnings growth for the year. So in the next slide, you can see here that the historical net income for the last three years, as well as the comparison of the first half of this year versus first half of last year. In the next slide, you can see that compared to the previous quarters, we're already profitable for our new plant in Batangas. So this plant, the operation started July of last year,...