D&L Industries Inc., a listed manufacturing company, said Thursday net income last year dropped 31 percent to P2.3 billion as interest and depreciation expenses related to its new Batangas factory soared.
The Batangas facility started commercial operations in July, prompting recognition of depreciation and interest expenses that previously were capitalized in the company’s financial statements.
“While 2023 was challenging on several fronts with the incremental expenses from the Batangas plant coming in during a tough economic environment, we are encouraged by the gradual ramping up of operations at this new facility and the early signs of an economic recovery,” said D&LL president and chief executive officer Alvin Lao in a statement.
Lao said that as of February this year, the Batangas plant already achieved 175 percent of the company’s first year export commitment with Philippine Economic Zone Authority.
“In hindsight, the decision to start building the plant back in 2018 and continue with the construction during the pandemic allowed us to build capacity that is approximately half the cost of what it would have been post pandemic. With none of our competitors building such capacity over the past couple of years, we are confident that this puts us in a very good position once global demand recovers,” he said.
