Net income rose 15 percent to P2.24 billion in the first nine months of 2026 even as revenue slipped 4 percent to P39.65 billion, while third-quarter profit jumped 32 percent to P735 million despite a steeper 12-percent sales decline.
The recovery was particularly strong in food ingredients, where earnings surged 77 percent as easing coconut oil prices reduced the cost of producing many of the company's products.
Keeping customers supplied
D&L president and CEO Alvin Lao said the company's ability to develop specialized products and maintain reliable supplies helped it navigate higher costs and other business pressures.
"Through our technical capabilities, we are able to weather headwinds, and allow us to ensure supply reliability and continuity for our customers, elevating us to preferred supplier status and solidifying our competitive position further,” Lao said in a statement on Friday.
Higher-margin specialty products accounted for 51 percent of sales, up from 46 percent in 2025, helping lift the company's overall gross profit margin to 14.3 percent from 12.9 percent.
The improvement was even sharper in the third quarter, when gross margins climbed to 15.3 percent from 11.3 percent a year earlier, although net income slipped 6 percent from the preceding quarter.
D&L Industries' return on equity rose to 12.7 percent from 11.3 percent at the end of 2025, meaning the company is generating more profit for every peso invested by its shareholders.
Lower costs free up cash
Coconut oil prices, which had surged in recent years, stabilized at around $2,000 per metric ton, reducing pressure on production costs and the cash needed to purchase raw materials.
D&L generated P1.9 billion in free cash flow during the nine-month period and fully repaid a P2-billion bond that matured in September, while its debt relative to operating earnings improved to four times from 4.3 times at the end of 2025.
Exports accounted for 23 percent of revenue, with overseas specialty product sales rising 14 percent and providing a partial offset to the weaker peso's impact on imported raw materials.
—Edited by Miguel R. Camus
