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, driven by resilient volume growth despite elevated coconut oil prices.
Recurring income rose 12 percent year-on-year to P554 million in the third quarter, the company said Wednesday in a disclosure to the stock exchange.
“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 Alvin Lao, D&L president and chief executive.
Lao said the company continues to focus on research and development.
“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,” he said.
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.
Despite this, total volume rose 11 percent year-on-year, supported by both high-margin specialty products and commodities.
D&L said margins are expected to recover once commodity prices normalize. Lao added the company could have sold more products if coconut prices were not so high.
The company remains “cautiously optimistic” for the rest of the year, citing easing inflation and interest rates that could help spur economic activity.
Export revenues climbed 20 percent year-on-year to P11 billion in the first nine months of 2025, while export gross profit rose 22 percent year-on-year. Exports accounted for 27 percent of total revenues during the period.
To further expand its exports business, D&L is exploring new markets and applications where coconut oil’s natural and sustainable profile offers a competitive edge.
The company continues to invest in research and development to drive innovation in high-margin specialty oleochemicals and functional ingredients derived from coconut oil.
