D&L Industries said Friday its recurring net income grew 2 percent in 2024 to P2.3 billion from a year ago despite higher operating costs and interest expenses linked to the opening of a new Batangas plant.
The company said fourth-quarter earnings rose 5 percent to P530 million from the same period last year as the Batangas plant started contributing to the business.
“We believe that our Batangas plant will keep contributing to our profits, and we see many opportunities both locally and internationally,” D&L president Alvin Lao said.
The Batangas plant turned profitable in 2024, reporting a P244-million profit for the year.
“The plant exceeded expectations, reaching profitability faster than planned. This success is seen as a sign that the plant will continue to help increase D&L’s overall income. The plant has already started fulfilling orders for both local and export customers and is working on certifications to attract more business,” Lao said.
Lao said that for 2025, he expects stronger earnings growth driven by continued improvements at the Batangas plant, upcoming election-related spending and increased use of biodiesel.
Exports contributed to the company’s growth in 2024, with sales reaching P12.4 billion, a 37-percent increase from the previous year.
Domestic sales went up by 16 percent, while profits decreased by 4 percent.
Lao said the export business has become an important source of income for D&L, offering higher profit margins.
The company focuses on high-value coconut oil-based products, which have become popular due to growing concerns about the environmental impact of palm oil and petroleum-based products.
Lao said while a potential new tariff might result in volatility in the near-term, D&L’s pricing structure and its ability to adjust selling prices protects the company from wild swings in forex and commodity prices.
“In our view, the apparent trade tensions between the US and China present opportunities for companies like us to supply to companies who cannot source from either the US or China. Our new plant in Batangas gives us the capacity and capability to cater to bigger export customers. This puts us in a prime position to capture opportunities arising from the evolving international trade environment,” Lao said.