D&L Industries Inc. posted resilient earnings growth in 2025, overcoming record-high raw material costs as strong volumes and improving margins underscored the strength of its business model.
The company reported full-year recurring net income of P2.6 billion, equivalent to earnings per share of P0.363. In the fourth quarter alone, recurring income rose 20 percent year on year to P640 million, signaling a rebound as cost pressures began to ease.
Growth was driven largely by an 8 percent increase in volumes, despite coconut oil prices—one of D&L’s key inputs—surging 62 percent year on year to nearly USD3,000 per metric ton. The spike, which saw prices nearly triple from lows two years ago, weighed on margins for much of the year but highlighted the company’s ability to sustain demand across both high-margin specialty products and commodity segments.
“Even as coconut oil prices reached an all-time high, we delivered double-digit earnings growth. This underscores the resilience of our business model,” said President and CEO Alvin Lao, citing continued investments in research and development and strong customer partnerships.
Margins have started to recover, with gross profit margins improving by 2.1 percentage points quarter on quarter in the fourth quarter, aided by a recent 20 percent pullback in coconut oil prices. While still elevated, management expects further normalization as commodity prices stabilize.
Lao flagged global uncertainties, including geopolitical tensions in the Middle East, as potential risks to input costs and supply chains. Still, he said disruptions could create opportunities for D&L to strengthen its position as a reliable supplier of customized solutions.
The company is also ramping up expansion efforts, supported by its newly completed Batangas plant, which boosts capacity and positions D&L to serve larger and more global customers.
