Alvin Lao confident economy will bounce back in ‘ber’ months if there’s no second wave | Bilyonaryo Business News

Alvin Lao confident economy will bounce back in ‘ber’ months if there’s no second wave

D&L Industries Inc. expects a gradual pick up in business activity in the fourth quarter following a lull brought on by the coronavirus pandemic.

Company president Alvin Lao said the past three months had been challenging for D&L due to operational restrictions and sapped demand due to the virus.

“We saw steep declines in most of our businesses in the first quarter when we only had two weeks of quarantine. It is likely that the second quarter will not be any better considering strict lockdown measures were in effect for the months of April and May.

We are optimistic that improvements might be seen in the third quarter, but may still be below pre-COVID levels. A reasonable recovery might be more probable in the fourth quarter as Christmas period in the Philippines sets in as early as September,” Lao said.

The company expects higher volume for its food ingredients business with the easing of restrictions for restaurants.

“I can sense that there’s still a lot of pent-up demand right now. So this could be positive once restrictions are eased further. This should help the country recover faster than most countries,” he said.

Lao, however, warned about the consequences a second wave of coronavirus would have on the economy.

“A possible monkey wrench, however, is a second wave that can return us to a stricter quarantine,” Lao said.

Lao said while the domestic business has slowed down, the company’s coconut oil exports remained relatively resilient.

“The interest in coconut oil continues to gain traction in the global market due to its perceived natural antiviral and antibacterial properties…The company plans to capitalize on this trend as it develops more products and penetrates more markets globally,” he said.


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