D&L Industries, Inc. on Wednesday reported a 5-percent increase in first-quarter net income, supported by improving margins and steady performance from its Batangas facility despite global volatility.
In a statement, the company said recurring net income reached P717 million for the January to March period, up from a year earlier and 12 percent higher quarter-on-quarter.
“Despite a continued challenging first quarter, we delivered 5 percent earnings growth, underscoring the resilience of our business model,” President and CEO Alvin Lao said.
Earnings per share stood at P0.10 amid a challenging environment marked by geopolitical tensions in the Middle East, elevated oil prices, and inflationary pressures.
Margins improved during the period, with blended gross profit margin rising to 13.4 percent, up by 0.7 percentage point year on year.
The high-margin specialty products segment posted a larger gain of 2.8 percentage points.
The company also reported a turnaround in free cash flow, which reached P339 million, driven by lower working capital requirements as coconut oil prices began to stabilize and capital expenditures remained muted.
Return indicators improved, with return on equity rising to 12.2 percent and return on invested capital to 9.9 percent.
Among business segments, Chemrez led growth with a 34-percent increase in earnings, driven by strong export sales of coconut-derived products.
The specialty plastics unit posted a 22-percent rise in income, while consumer products' original design manufacturing surged 65 percent on higher volumes and improving margins.
The food ingredients segment, however, recorded weaker results, with earnings declining 69 percent year on year due to portfolio optimization efforts and softer demand amid rising input costs.
D&L said it expected margins to continue recovering as raw material prices normalize and the Batangas plant contributes more significantly to earnings.
D&L’s share price rose by a centavo to close at P3.58 each on Wednesday.
