DMAP member companies see earlier-than-expected recovery

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DISTRIBUTION managers expect full business recovery from typhoon Milenyo a month earlier than projected.

“Business is recovering faster than projected. This is a good development for our members as we are back on track in hitting our full-year growth target,” said John Guillermo, vice president of the Distribution Management Association of the Philippines (DMAP).

Based on initial assessments, DMAP-member companies particularly those engaged in the food sector are a month ahead of the two-month expected recovery period.

Guillermo said majority of DMAP member-companies’ operations in Southern Manila are almost back to normal. Only isolated areas are without power in the Bicol region. Southern Manila and the Bicol region were the two hardest hit when typhoon Milenyo unleashed its fury last month leaving the two areas without electricity for almost three weeks. The situation forced businessmen to cancel orders.

Guillermo noted losses from sales are down to manageable levels and not seen as seriously affecting business targets even if recovery takes a bit longer.

DMAP member companies reported average daily loss sale of up to 60 tons in the first three days after the typhoon left the metro. The figure increased by up to 10% the following week after the government failed to restore power immediately.

“With the earlier-than-projected recovery, DMAP operations are so much better now. We expect more activity in the run-up to Christmas,” Guillermo predicted.

Guillermo said they see better growth prospects toward year end particularly if the current business climate holds, the peso continues its rally against the dollar, and oil prices continue to drop.