D&L Industries, Inc. (D&L) has once again earned the highest credit rating of PRS Aaa, with a Stable Outlook, for its ₱2.0 billion outstanding Fixed Rate Bonds, as affirmed by the Philippine Rating Services Corporation (PhilRatings).
Obligations rated PRS Aaa are considered of the highest quality with minimal credit risk, reflecting D&L’s extremely strong capacity to meet its financial commitments.
The Stable Outlook indicates that the rating is likely to remain unchanged over the next 12 months.
PhilRatings highlighted several key factors in maintaining D&L’s top rating:
Strong Market Position: D&L continues to lead in the industries it operates in.
Diversified Products and Markets: The company offers a wide range of products and serves various markets, ensuring resilience against competition.
Innovation-Driven Specialty Products: D&L’s focus on customized and specialized products ensures consistent demand and shields it from intense competition.
Robust Revenue Generation: Despite lower margins, D&L has demonstrated strong revenue growth.
Manageable Debt Levels: While debt levels have increased, they remain manageable, supported by steady equity growth.
D&L’s commitment to innovation and product customization has been a cornerstone of its success since its establishment in 1971.
The company operates across four principal business segments: Food Ingredients, Oleochemicals and Other Specialty Chemicals, Specialty Plastics, and Consumer Products Original Design Manufacturer (ODM).
Its revenue sources are geographically diverse, with export sales accounting for 34% of total sales in the first quarter of 2025.
D&L aims to increase export sales contribution to 50% in the future.
The company’s expansion plant in Batangas, which began operations in July 2023, has already delivered positive earnings for full-year 2024, ahead of expectations.
The plant’s ramp-up is expected to further bolster D&L’s performance.
In the first quarter of 2025, D&L achieved a 61.6% year-on-year increase in total revenues, driven by higher sales volume.
Net income for the quarter reached ₱681.1 million, up 10.2% year-on-year, despite higher costs and expenses.
While net profit margins declined due to rising commodity prices, particularly for coconut oil, D&L anticipates margin recovery as prices stabilize.
