Chemical manufacturer D&L Industries Inc. (DNL) reported a 5 percent increase in net income for the first quarter, reaching P717 million from P681 million a year earlier, even as sales declined.
The company said growth was driven by improved profit margins and steady performance from its Batangas plant, which recorded its sixth straight profitable quarter.
Revenue fell 10 percent to P12.82 billion from P14.26 billion, as weaker food ingredient sales were partly offset by stronger non-food products.
DNL president Alvin Lao said the company faced challenges from volatile raw material costs and global tensions, including oil price shocks linked to conflict in the Middle East. However, stabilizing coconut oil prices and effective cost management helped improve margins.
Gross profit margin rose to 13.4 percent, while higher-margin specialty products saw stronger gains.
The food ingredients segment saw a sharp drop, with volumes down 28 percent and earnings falling 69 percent, partly due to a high comparison base last year and weaker demand linked to rising costs.
Meanwhile, Chemrez, the company’s specialty chemicals unit, posted a 34 percent increase in earnings, supported by strong export sales of coconut-based products.
DNL said it remains optimistic about its outlook, citing its diversified business and the expanded capacity of its Batangas plant to support future growth.
