LISTED D&L Industries, Inc. grew its first-quarter net income by 10% to P681 million from P618 million a year earlier, driven by stronger exports and the continued ramp-up of its Batangas plant operations.
Sales during the first quarter rose by 62% to P14.27 billion from P8.83 billion a year ago, the specialty food ingredients and oleochemicals producer said in a regulatory filing on Wednesday.
Export sales, which accounted for 34% of total sales, surged by 69% to P4.8 billion on higher volume. The company’s Batangas plant increased its net income by 35% quarter on quarter to P333 million, led by orders from both local and export customers.
“The year started with strong momentum. However, the increasing global uncertainties have led to a noticeable slowdown and dampening of global business sentiment,” D&L President and Chief Executive Officer Alvin D. Lao said in a separate media briefing late Tuesday.
According to Mr. Lao, there has been some hesitation among its United States customers amid uncertainties.
However, he said the US market accounts for only about 3% of D&L’s total revenue.
“Nonetheless, the Philippines may be one of the least affected countries given its import-heavy trade balance. In addition, the lower proposed reciprocal tariff for the Philippines versus its neighboring countries may put the Philippines in an advantageous position,” he said.
Total volume increased by 33%, as high-margin specialty products (HMSP) grew by 36% and commodities rose by 30%.
“The buoyant volume growth was driven by a combination of the strong exports, new customer wins, market share grab, and positive regulatory development with the increase in mandated biodiesel blend from 2% to 3% starting Oct. 1, 2024,” D&L said.
However, the growth was tempered by the increase in commodity prices such as coconut oil, which saw a 74% average increase for the quarter amid tight supply due to the effects of El Niño last year.
Among segments, the food ingredients division posted a 33% volume growth, led by HMSP and commodities.
Chemrez Technologies, Inc. recorded a 27% increase in earnings, driven by its biodiesel division following the higher biodiesel blend.
The specialty plastics division saw a 5% drop in earnings as tariff-related uncertainties hampered business sentiment in the global automotive industry.
The consumer products original design manufacturer division recorded a 30% decline in net income on lower margins, though volume increased by 23% amid easing inflation.
“While volatility is likely to persist in the near term, we remain unfazed and continue to focus on building resiliency and long-term growth strategies,” Mr. Lao said.
“We believe that with our product portfolio, the majority of which cater to basic and essential industries, we will continue to grow and be relevant in an ever-changing business environment and world trade order,” he added.
D&L shares rose by 1.05% or six centavos to P5.76 per share on Wednesday. — Revin Mikhael D. Ochave
