D&L Industries (DNL) announced strong financial results for the first nine months of 2025 (9M25), reporting that recurring net income grew by 8% year-on-year (YoY) to P1.95 billion, corresponding to an earnings per share (EPS) of P0.273.
The positive result was primarily driven by robust volume expansion, which grew a resilient 11% YoY, successfully offsetting the impact of an unprecedented surge in key raw material prices. For the third quarter (3Q25) alone, recurring income accelerated, rising 12% YoY to P554 million (EPS of P0.078).
The earnings growth was achieved despite a challenging environment, particularly the sharp escalation in coconut oil prices, a critical raw material for DNL. The average price of coconut oil surged by 78% YoY during the 9M25 period, reaching a new all-time high of nearly USD 3,000 per metric ton in the third quarter—almost triple the lows recorded just two years prior. This pressure led to a 3.2 percentage point decline in the company’s overall blended margins for the nine months.
“The operating environment remains challenging, with coconut oil prices reaching a new all-time high in the third quarter,” remarked D&L President and CEO, Alvin Lao. “Despite this, we delivered an 8% earnings growth for the period—driven mainly by healthy volume expansion, which underscores the fundamental strength of our business.”
Mr. Lao emphasized the company’s strategy to counteract commodity volatility: “While we cannot control commodity price movements, we can control how we navigate these challenges and where we direct our focus and resources. In this volatile environment, we continue to stay true to our core—investing in R&D and innovation. We believe these investments will enable us to develop higher-value, more technical, and differentiated solutions for our customers, helping insulate the business from macroeconomic volatility.”
Looking ahead, D&L remains cautiously optimistic. While some customers continue to face pressure from elevated input costs, improving macro fundamentals—such as easing inflation and interest rates—are expected to help spur economic activity.
Mr. Lao reiterated the commitment to the company’s future growth: “Regardless of near-term market noise, our focus remains on executing our long-term strategies. We are still in the early stages of realizing the full potential of our Batangas plant, which we believe will anchor the next phase of our growth.”
The Lao family has demonstrated its confidence in D&L’s long-term prospects through continued share accumulation via holding company Jadel Holdings, which has increased its ownership stake in DNL by approximately 5% since the pandemic. The family purchased 20 million shares in 2024 and 69 million shares year-to-date in 2025. At current market levels, the stock offers an attractive dividend yield of about 4.7%, based on dividends paid this year.
D&L expects margins to fully recover once commodity prices begin to normalize, noting that historically, sharp run-ups in coconut oil prices have been followed by equally swift corrections.
