D&L profit hit P2.6B in 2025

D&L Industries Inc. saw its net income jump by 10.6 percent to P2.6 billion in 2025 as resilient volumes offset elevated raw material costs.

The company said on Wednesday earnings translated to P0.363 per share, with steady demand across both high-margin specialty products and commodity segments.

In the fourth quarter alone, net income surged 20 percent to P640 million, supported by improving margins and easing coconut oil prices.

Volumes expanded 8 percent for the year, reflecting the underlying strength of the business despite a surge in coconut oil prices, a key raw material.

D&L said coconut oil prices climbed sharply, reaching nearly $3,000 per metric ton or almost triple levels seen two years ago.

However, gross profit margins began to recover in the fourth quarter, improving by 2.1 percentage points quarter-on-quarter as prices started to correct.

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The company expects margins to normalize as commodity prices stabilize. It noted that past spikes in coconut oil prices were followed by quick corrections.

Lower capital expenditures—which fell below P1 billion in 2025 following the completion of its Batangas plant—also provided room for deleveraging.

“Looking ahead, 2026 presents a new set of uncertainties, particularly with the ongoing war in the Middle East and its potential impact on crude oil prices, raw material costs and global supply chains. Nonetheless, periods of disruption also create opportunities. We believe this environment allows us to further strengthen our position as a reliable supplier and trusted partner, supporting our customers with customized solutions as they navigate a more volatile operating landscape,” D&L president and CEO Alvin Lao said.