Chemical maker D and L Industries Inc. (DNL) is more confident about its performance in the coming quarters, noting that costs for major raw materials have eased after hitting highs recently. President and CEO Alvin Lao reported coconut oil prices dropped roughly 30 percent to $2,100 per metric ton, down from $3,000 last August when tensions in the Middle East were at their peak. Crude oil costs have also declined, leading Lao to say, “I think the worst is over.” The firm uses coconut oil for about 39 percent of its raw material needs, and Lao added that if the business thrived at the higher price level, it will be even more stable now.
Lower inflation recorded in May also signals improving conditions, though the company’s food segment continues to struggle as consumers cut back on spending. This weakness was fully offset by strong growth in the non-food division, which makes up 46 percent of total revenue. Industrial clients in plastics, packaging, construction, and paints stocked up heavily earlier due to supply concerns from the Middle East conflict, boosting sales significantly. Lao also clarified that rising electric vehicle sales have minimal effect on biodiesel demand, since diesel is mostly used by public transport and trucks, not private cars.
In governance updates, DNL appointed two new independent directors: Cesar G. Romero, formerly of Pilipinas Shell, and Richard Raymond B. Tantoco, previously of Energy Development Corp. They replace directors who completed their nine-year term limit set by the SEC. Mercedita S. Nolledo moved from independent to regular director due to the same rule. The seven-member board is rounded out by Karl Kendrick T. Chua and members of the Lao family.
