D&L INDUSTRIES, INC. said it’s on the right track to fulfill, or possibly exceed, its 10% profit growth goal for 2025 amid solid demand and export expansion despite high coconut oil prices.
“We’re at 8% yr on yr for nine months versus nine months last yr,” D&L President and Chief Executive Officer Alvin D. Lao told a virtual news briefing on Wednesday. “So it’s not removed from the ten% goal. We’re going to try our greatest to hit that.”
Third-quarter earnings on the listed food ingredient and oleochemical producer rose 12.37% to P554 million from a yr earlier, supported by regular volumes despite surging raw material costs. Revenue climbed 40% on stronger coconut oil prices, which rose 78% yr on yr, while sales volume grew 11%.
“When it comes to revenues, admittedly, the majority of the rise is absolutely coming from higher prices, particularly coconut oil,” Mr. Lao said. “Almost 30% of our revenue increase is attributable to higher prices.”
Coconut oil prices peaked at almost $3,000 per metric ton, almost triple 2023 lows, cutting blended margins by 3.2 percentage points in the primary nine months, the corporate said in a regulatory filing. Prices have since eased 17% from the height but remain historically high.
Mr. Lao attributed the spike to rising demand and limited supply. Unlike palm oil, which comes from mechanized plantations, coconut production stays largely manual and stagnant, he said.
Even with higher input costs, D&L said its exports continued to perform strongly, with revenue up 20% and gross profit rising 22%. Export margins reached 17.2%, compared with 11.4% for domestic sales.
“If the coconut oil price wasn’t that top, we might have sold more — we could sell far more,” Mr. Lao said.
He added that the corporate’s resilience amid volatile commodity markets underscores its strong fundamentals. They’ll’t control price swings, but they will control how they respond and where they focus their efforts, he said, citing continued investment in research and development.
For January to September, D&L posted a 7.73% increase in net income to P1.95 billion from a yr earlier.
Mr. Lao said he expects business conditions to enhance in 2026 as borrowing costs decline globally. “Rates of interest are coming down, not only within the Philippines but within the US and other markets as well. From that perspective, 2026 must be higher,” he said.
Shares of D&L fell 1.76% to P4.46 each on the local bourse. — Alexandria Grace C. Magno