C06239-2016

SECURITIES AND EXCHANGE COMMISSIONSEC FORM 17-C

CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.2(c) THEREUNDER

1. Date of Report (Date of earliest event reported)
Nov 8, 2016
2. SEC Identification Number
44852
3. BIR Tax Identification No.
000-421-957-000
4. Exact name of issuer as specified in its charter
D&L Industries, Inc.
5. Province, country or other jurisdiction of incorporation
Metro Manila
6. Industry Classification Code(SEC Use Only)
7. Address of principal office
65 Industria St., Bagumbayan, Quezon City Postal Code 1110
8. Issuer's telephone number, including area code
(02) 635-0680
9. Former name or former address, if changed since last report
NA
10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA
Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding
Common 7,142,857,990
11. Indicate the item numbers reported herein
-

The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.

D&L Industries, Inc.DNL

PSE Disclosure Form 4-31 - Press Release References: SRC Rule 17 (SEC Form 17-C)
Section 4.4 of the Revised Disclosure Rules

Subject of the Disclosure

D&L Industries Reports Nine Months 2016 Results

• Recurring Net Income at P1.93 billion, 16% higher y-o-y, or EPS of P0.27
• Revenues grew by 10% y-o-y on higher commodity prices and sales volume
• Positive free cash of P787 million in 3Q on improved working capital cycle
• Gross Profit Margin up 0.8 ppt at 18.7% on improved mix
Background/Description of the Disclosure

November 8, 2016 – D&L Industries’ recurring net income reached P1.93 billion, or earnings per share of P0.27, for the nine-month period ended September 30, 2016. This is 16% higher than last year. Earnings before interest and taxes were higher by 18% at P2.44 billion. Including the one-time costs on taxes and filings related to the increase in the authorized capitalization in June 2015, net income grew by 19%.

Year-to-date revenues were up 10% on the back of a broad-based increase in sales volume and higher prices of palm oil and coconut oil in the third quarter. High margin specialties accounted for 61% of revenues, bringing the overall gross profit margin to 18.7% from 17.8%. The Company generated a return on equity of 19.4% and a return on invested capital of 20.0%.

The second quarter of 2016 was particularly strong, owing to the election spending and timing of the Easter holiday. Going into the second half of the year, all businesses are operating on solid ground and contributing to earnings growth. Enabled by investments in R&D, which since 2012 has increased 43%, the Company continues to focus on key opportunity areas in specialties in food ingredients, chemicals, plastics, and aerosols.

Inventories have come down from June levels and with the improvement in working capital, the Company generated P787 million and P160 million in positive free cash in the third quarter and nine-month period, respectively. This was a reversal from the negative P627 million free cash in the first half of the year.

The Company continues to pay down debt, resulting in lower borrowings in the third quarter. Meanwhile, a total of P1.43 billion was returned to shareholders in dividends during the period, bringing the total dividend payout to P3.22 billion since listing in 2012. Overall, net debt as of end September 30, 2016 was P2.45 billion, with net gearing at a modest 18% and interest cover comfortably at 30x.
Other Relevant Information

Please see attached.
Filed on behalf by:
Name Kristine Ann Catindig-Ong
Designation Corporate Legal Counsel/Corp. Information Officer