Thursday, 08 May 2025, 5:48 am

    Batangas plant powers D&L’s 10% 1Q earnings jump

    D&L Industries Inc., a leading specialty chemicals and food ingredients manufacturer, reported a 10 percent increase in first-quarter net income to ₱681 million, up from ₱618 million a year earlier, buoyed by a strong ramp-up in exports from its new Batangas plant.

    In a disclosure Wednesday, the company said total revenue jumped 62 percent to ₱14.26 billion from ₱8.83 billion, largely due to higher commodity prices. While these costs were passed through to customers, D&L acknowledged that surging raw material prices, especially coconut oil, limited the full earnings potential for the period.

    Export sales surged 69 percent year-on-year, now contributing a record 34 percent to total revenue—an early vindication of the company’s strategic investment in its Batangas facility, which is positioned as a regional manufacturing and export hub.

    “The year started with strong momentum,” said president and CEO Alvin Lao, while cautioning that “global uncertainties have led to a noticeable slowdown in business sentiment.” However, Lao pointed to the Philippines’ import-heavy trade balance and favorable tariff positioning as relative advantages in an increasingly volatile global market.

    Volume growth also reflected strong operational momentum, rising 33 percent overall, with high-margin specialty product volumes up 36 percent and commodity product volumes increasing 30 percent. Still, the company’s margins were squeezed by a 74 percent surge in average coconut oil prices for the quarter, attributed to global demand and supply constraints linked to last year’s El Niño.

    Looking ahead, D&L expects relief from the seasonal coconut harvest starting May, which could ease supply tensions and support margin recovery. Lao emphasized that the company remains focused on building long-term resilience and capitalizing on essential industries amid shifting global trade dynamics.

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