D&L Industries, a leading manufacturer of customized food ingredients, specialty raw materials for the personal and home care industries, and oleochemicals, announced a 10% year-on-year increase in recurring income for the first quarter of 2025, reaching ₱681 million, or ₱0.095 earnings per share. The strong performance was primarily driven by the continued growth in exports and the successful ramp-up of operations at its Batangas manufacturing facility.
“The year started with strong momentum,” said Alvin Lao, President and CEO of D&L Industries. “While global uncertainties have dampened business sentiment, the Philippines is relatively insulated due to its import-heavy trade balance. Our ability to deliver double-digit earnings growth despite these challenges underscores the strength and resilience of our business.”
Key Highlights – Q1 2025:
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Recurring income grew 10% YoY to ₱681 million
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Exports surged 69% YoY to ₱4.8 billion, contributing a record 34% to total sales
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Export gross profit jumped 90% YoY, with margins of 18.3%, significantly higher than the 9.8% domestic margin
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Total volume grew 33% YoY, with High Margin Specialty Products (HMSP) up 36% and commodities up 30%
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Batangas plant net income rose 35% QoQ to ₱333 million
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ROE and ROIC improved to 12.1% and 10%, respectively
Despite the headwinds from rising global commodity prices—particularly a 74% YoY increase in coconut oil costs—D&L managed to offset margin pressures through robust volume growth and strategic price adjustments. The company expects margin recovery as commodity prices stabilize, especially with the onset of the seasonal coconut harvest.
The Batangas facility, operated by Natura Aeropack Corporation and D&L Premium Foods Corp., continues to play a pivotal role in driving growth. With state-of-the-art capabilities, the plant has successfully serviced both local and export clients and is undergoing certifications to onboard more international partners.
“Our Batangas operations are just beginning to show their potential,” Lao noted. “We see vast opportunities in the global market, especially for our sustainable, coconut-based products which align with the growing demand for natural and eco-friendly alternatives.”
Looking ahead, D&L is targeting a long-term export contribution of 50% to total sales, as global demand for sustainable ingredients rises. The company remains committed to long-term growth strategies and improving return ratios to the mid-to-high teens.
Meanwhile, the company’s balance sheet remains strong, with interest coverage at 4x and a net gearing ratio of 92%. Capital expenditures have moderated following the completion of the Batangas plant, with 1Q25 capex below ₱200 million, signaling a shift toward operational efficiency and sustained profitability.
“Volatility may persist, but we remain focused on building resilience and relevance in today’s evolving global trade environment,” Lao concluded.
