D&L Industries Inc. reported an 8-percent year-on-year increase in recurring income to P1.95 billion in the first nine months of 2025 on resilient volume growth despite elevated coconut oil prices.
It said in a disclosure to the Philippine Stock Exchange Wednesday third-quarter recurring income rose 12 percent year-on-year to P554 million.
Total volume for the nine-month period rose 11 percent year-on-year, supported by both high-margin specialty products and commodities.
Export revenues climbed 20 percent year-on-year to P11 billion, while export gross profit rose 22 percent year-on-year, accounting for 27 percent of total revenues during the period.
The company said it is exploring new markets and applications to further expand its exports business, focusing on areas where coconut oil’s natural and sustainable profile offers a competitive edge.
Coconut oil, a key raw material for D&L, saw its average price surge 78 percent year-on-year during the period, reaching nearly 3,000 per metric ton in the third quarter. This pushed blended margins down by 3.2 percentage points in the first nine months of 2025. D&L said margins are expected to recover once commodity prices normalize.
“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 chief executive Alvin Lao.
“While we cannot control commodity price movements, we can control how we navigate these challenges and where we direct our focus and resources. In this volatile environment, we continue to stay true to our core—investing in R&D and innovation,” said Lao.
He said the company remains “cautiously optimistic” for the rest of the year, citing easing inflation and interest rates that could help spur economic activity.
He said the company could have sold more products if coconut prices were not this high. The company said it continues to invest in research and development to drive innovation in high-margin specialty oleochemicals and functional ingredients derived from coconut oil.
