D&L confident in growth amid shifting trade
The company presently maintains a flexible pricing strategy to help cushion the impact of currency fluctuations and commodity price volatility.
Daily TribuneThe company presently maintains a flexible pricing strategy to help cushion the impact of currency fluctuations and commodity price volatility.
Leveraging its adaptability, publicly listed D&L Industries Inc., a leader in specialty food ingredients and oleochemicals, remains confident in sustaining business growth amid potential new tariffs and changing global trade dynamics.
D&L President & CEO Alvin Lao said on Thursday that the company presently maintains a flexible pricing strategy to help cushion the impact of currency fluctuations and commodity price volatility.
Its strong research and development capabilities also allow it to continue providing value-added solutions to customers.
“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,” Lao said.
Lao recalled that the 2019 trade war and global economic caution led to a 25 percent decline in D&L’s exports.
However, he said ongoing supply chain restructuring worldwide has helped businesses adapt, putting the company in better position to withstand looming potential tariff-related disruptions.
“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,” he said.
D&L’s export sales account for about 31 percent of total revenue, driven by highly customized products that require significant R&D input and are not easily replicable.
The company also benefits from the Philippines’ natural resources, particularly coconut-based products, which have a strong global demand.
“The products that we export are generally distinguished by their unique functional and technical properties, making D&L a go-to supplier for many global customers.
With an aggressive export strategy and enhanced production capabilities, we maintain our guidance of reaching 50 percent export sales contribution to total sales over the medium term,” Lao said.
In the first nine months of 2024, D&L recorded a 38 percent year-over-year increase in export sales, fueled by entry into new markets and rising global demand for coconut-based products.