“We threw out all our projections. Because all of the assumptions are no longer applicable,” D&L president and CEO Alvin D. Lao said in a briefing on Wednesday.
Even so, management sees the disruption as a window to strengthen its position amid a more volatile operating environment.
Earnings resilience holds
The company grew 2025 recurring net income by 10.6 percent to P2.6 billion, despite coconut oil prices nearly tripling from lows two years ago.
Fourth-quarter earnings rose 20 percent to P640 million, supported by eight percent volume growth across both high-margin specialty products and commodity segments.
“Even as coconut oil prices, one of our key raw materials, reached an all-time high and nearly tripled from the lows recorded just two years ago, we delivered 10.6 percent earnings growth for the year,” Lao said.
Positioning for opportunity
Supply remains tight with some global partners declaring force majeure, although D&L maintains about 74 days of inventory to keep operations running.
“The price of everything is going up… but it seems access to supply for a lot of products is also affected. And that’s a big worry,” he said.
Still, the Lao family has increased its stake by about five percent since the pandemic, while the stock offers a dividend yield of around 6.1 percent, signaling confidence.
“We believe this environment allows us to further strengthen our position as a reliable supplier and trusted partner,” Lao said.
—Edited by Miguel R. Camus
