Higher export sales and revenues from its Batangas plant boosted publicly-listed D&L Industries’ income in the first half of the year, raising hopes for a double-digit income growth this year.

Alvin Lao, D&L president and chief executive officer, in an online briefing Tuesday, reported that earnings in the first six months this year rose 6 percent to nearly PHP1.4 billion from year-ago’s PHP1.32 billion.

He, however, noted that higher coconut oil prices dampened the rise in income in the first six months this year, due to lower contribution from their high-margin business that covers oil-based food, personal hygiene, and home care segments.

Exports registered a 28 percent year-on-year growth in sales, with gross profit rising by 7.4 percent, and is seen as a “bright spot amidst a generally cautious consumer sentiment in the domestic market.”

For the second quarter, net income rose by 2 percent to PHP714 billion.

Last year, the company booked a full-year income of PHP2.3 billion.

“So we only need about PHP946 million in the second half to meet last year’s net income,” Lao said.

Lao also cited the projected additional cuts in the Bangko Sentral ng Pilipinas (BSP) key rates this year as a plus to their business.

Aside from lower interest rate expense, he said lower BSP rates mean people will have more cash to spend on other things.

“In general, lower interest rates are positive or bullish for an economy. And that is something we think will be beneficial to the overall economy. So, there’ll be more demand for our products (and) our customers’ products. So, it will spur more growth,” he added. (PNA)