D&L Industries Inc. on Wednesday reported a 10.6-percent increase in recurring net income to P2.6 billion for 2025, driven by resilient volume growth despite elevated coconut oil prices.
In a disclosure, the specialty food ingredients and chemicals manufacturer said earnings per share reached P0.363 for the year.
Fourth-quarter recurring income rose 20 percent to P640 million, translating to P0.09 in earnings per share.
Volume growth was said to have remained strong, expanding 8 percent and supported by both high-margin specialty products and commodity segments.
D&L President and CEO Alvin Lao said the company’s performance underscored the resilience of its business model despite the sharp increase in coconut oil prices, which nearly tripled from two years ago.
He added that sustained investments in research and development, coupled with the firm’s ability to provide customized solutions and maintain long-standing customer partnerships, helped drive earnings.
Looking ahead, Lao said 2026 could bring fresh uncertainties due to the war in the Middle East, which had already begun to affect crude oil prices, raw material costs and global supply chains.
“Nonetheless, periods of disruption also create opportunities,” he said, noting that the company aims to strengthen its position as a reliable supplier by supporting customers with tailored solutions in a more volatile environment.
Coconut oil prices, which surged 62 percent to nearly $3,000 per metric ton, weighed on margins during the year.
However, the company said margins began to recover in the fourth quarter, with gross profit margin improving by 2.1 percentage points quarter on quarter as prices started to ease.
D&L said it expected margins to normalize further as commodity prices stabilize, noting that coconut oil prices have already declined by about 20 percent from their peak while still elevated historically.
Capital expenditures fell to below P1 billion in 2025 following the completion of its Batangas plant, with spending expected to remain modest in the near term.
The company said easing commodity prices should also support further deleveraging, with net debt declining by P3 billion quarter on quarter.
Among its business segments, the food ingredients unit saw earnings drop 61 percent due to margin pressure from rising input costs, although volumes for high-margin specialty products grew 13 percent.
Chemrez, meanwhile, delivered strong results, with volumes increasing 24 percent and net income nearly doubling, supported by sustained demand for coconut-based products and the higher biodiesel blending mandate.
The specialty plastics segment posted a 9-percent increase in earnings, benefiting from continued product innovation and higher-margin offerings, while the consumer products original design manufacturing unit recorded an 80-percent surge in earnings as operations in Batangas ramped up and exports expanded.
The company said it remained optimistic about its growth prospects, supported by its expanded production capacity, continued push into international markets, and stable demand for its essential products.
D&L shares added P0.20, or 5.71 percent, to close at P3.70 each on Wednesday.