D&L Industries Inc. reported a 10.6-percent increase in recurring net income to P2.6 billion in 2025 from P2.3 billion the previous year, as the company prepares to navigate market volatility linked to ongoing conflict in the Middle East.
The country’s largest producer of oleochemicals and specialty plastics saw 2025 volumes grow 8 percent year-on-year, supported by resilient demand in both high-margin specialty products and commodity segments.
The earnings growth came despite coconut oil prices reaching an all-time high and nearly tripling from lows recorded 2 years ago.
D&L Industries president and chief executive Alvin Lao said 2026 presents a new set of uncertainties, particularly from the potential impact of the Middle East war on crude oil prices, raw material costs and global supply chains. However, Lao noted that market disruptions also create opportunities for the firm.
“We believe this environment allows us to further strengthen our position as a reliable supplier and trusted partner, supporting our customers with customized solutions as they navigate a more volatile operating landscape,” Lao said.
To mitigate supply chain risks, the group has expanded its list of suppliers after some providers declared force majeure, effectively canceling contracted future supplies. The company maintains 74 days’ worth of inventories to ensure manufacturing facilities remain operational.
The Lao family has demonstrated confidence in the long-term outlook through continued share accumulation. Their holding company, Jadel Holdings, has increased its stake in the firm by approximately 5 percent since the pandemic.
“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.
The company attributed the 2025 performance to the strength of its biodiesel, plastics, and consumer businesses.
