Third-quarter earnings climbed 12 percent, showing the company’s ability to stay profitable even as raw material costs soared to almost $3,000 per metric ton.
Management’s view
“The operating environment remains challenging, with coconut oil prices reaching a new all-time high in the third quarter. At its peak, prices have nearly tripled from the lows recorded just two years ago,” said D&L president and CEO Alvin Lao.
“Despite this, we delivered an 8 percent earnings growth for the period—driven mainly by healthy volume expansion, which underscores the fundamental strength of our business,” Lao added.
“While we cannot control commodity price movements, we can control how we navigate these challenges and where we direct our focus and resources,” he added.
Analysts’ view
According to an AP Securities research analyst Cholo Miguel Ramirez, D&L Industries’ nine-month 2025 net income rose 8 percent to P1.95 billion, slightly below estimates due to volatile coconut oil prices that weighed on margins.
He noted, however, that its Batangas plant outperformed expectations with P694 million in profit, while export and domestic sales surged, showing solid long-term growth potential once input costs stabilize.
He said AP Securities maintains its “buy” rating with a target price of P7.53 per share.
Volume gains offset higher costs
Exports continued to power growth, with revenues up 20 percent and gross profit up 22 percent to P11 billion, outpacing domestic performance. Total volume rose 11 percent year-on-year, helped by strong demand for both high-margin specialty products and basic commodities.
Lao said the company continues to invest in R&D and product innovation to create more technical, value-added solutions that help cushion the business from price swings.
—Edited by Miguel R. Camus
