D&L Industries Inc.said Wednesday its net income rose 5 percent to P717 million in the first quarter of the year as domestic customers front-loaded raw materials to hedge against supply disruptions linked to the Middle East conflict.
The specialized food ingredients and chemicals manufacturer saw improved margins and sustained profitability at its Batangas plant, which marked its sixth consecutive profitable quarter. Growth in the non-food segment, including oleochemicals, specialty plastics, and consumer products, delivered double-digit increases in both revenue and net income.
D&L president and chief executive Alvin Lao said domestic businesses recorded stronger sales and earnings because customers increased purchases of non-food raw materials.
Lao said customers are buying as much stock as they can to ensure ample supplies as well as to lock in the cost as prices are expected to go up due to prolonged war in the Middle East.
Higher volume sales in non-food units offset broader market volatility. Lao expressed confidence that the company will maintain its growth momentum despite domestic headwinds and global uncertainty.
“Amid global uncertainties and domestic headwinds that have weighed on Philippine market valuations and liquidity, we continue to see compelling value in fundamentally strong businesses with long-term staying power,” Lao said.
