D&L Industries Inc. said Friday its recurring income in 2024 rose 2 percent year-on-year to P2.3 billion, buoyed by gains from the operation of its recently opened manufacturing facility in Batangas.
Earnings in 2024 translated to an earnings per share of P0.327. In the fourth quarter, the D&L recorded earnings of P530 million, up 5 percent from the year-earlier period and 7 percent higher compared to the third quarter, reflecting continued positive momentum despite rising operating and interest expenses, particularly tied to the Batangas plant’s ramp-up.
The Batangas plant, which started its operations recently, turned profitable for the full year, posting a net profit of P244 million. This marked a significant milestone, as it achieved profitability earlier than initially expected, ahead of a two-year timeline based on performance from the company’s older plants. While operating expenses related to the plant’s new lines were a drag on its performance in Q3, the plant rebounded in the fourth quarter, contributing positively to the bottom line.
“We are pleased with the progress of our Batangas plant, which is proving to be a key driver of our growth,” said D&L president and chief executive officer Alvin Lao. “Though we anticipate some variability in profitability in the early stages of the plant’s operations, we are confident that it will increasingly contribute to our overall net income in the future. The plant’s performance is a testament to the significant potential we see in both local and international markets.”
Looking ahead, D&L remains optimistic about 2025, with expectations of continued earnings growth driven by the ramp-up of the Batangas plant. Lao also noted near-term catalysts, including election-related spending, increased biodiesel blend, and ongoing economic recovery.
In a sign of confidence in the company’s future, the Lao family, through its holding company Jadel, has continued to buy D&L shares, acquiring an additional 2.2 percent of the company’s outstanding shares since 2020.
The Batangas plant continues to secure local and export orders, with several audit and certification processes underway to onboard additional customers, further strengthening D&L’s position in the market.
