Listed D&L Industries Inc. remains confident about its export growth despite potential U.S. tariff hikes and global uncertainties, as strong overseas demand continues to fuel its earnings.

The specialty food ingredients and oleochemicals producer reported a 10 percent increase in recurring income to P681 million in the first quarter, boosted by rising exports and the ramp-up of its Batangas plant.

“The year started with strong momentum. However, the increasing global uncertainties have led to a noticeable slowdown and dampening of global business sentiment,” D&L President and CEO Alvin D. Lao said during a media briefing on Wednesday.

Even with global headwinds, Lao believes the Philippines remains in a favorable trade position.

“The Philippines may be one of the least affected countries given its import-heavy trade balance,” he noted.

“In addition, the lower proposed reciprocal tariff for the Philippines versus its neighboring countries may put the Philippines in an advantageous position.”

Exports jumped 69 percent year-on-year to P4.8 billion, now accounting for a record 34 percent of total revenues. D&L aims for exports to contribute 50 percent over the medium term.

Despite some hesitation from U.S. customers, Lao said only three percent of D&L’s revenues come from the U.S., leaving most of its business insulated from potential tariff changes.

“While volatility is likely to persist in the near-term, we remain unfazed and continue to focus on building resiliency and long-term growth strategies,” Lao said.

“We believe that with our product portfolio, the majority of which caters to basic and essential industries, we will continue to grow and be relevant in an ever-changing business environment and world trade order.”

Export margins stood at 18.3 percent, almost double the 9.8 percent margin for domestic sales, highlighting export profitability amid global volatility.

Strong volume growth, new customer wins, market share gains, and favorable regulatory changes — such as the increased biodiesel blend mandate—also supported the company’s performance in the first quarter.

Lao said the Batangas plant generated a 35 percent quarter-on-quarter increase in net income to P333 million, recovering from start-up losses.

Other core divisions — including food ingredients, the chemicals unit Chemrez, and Consumer Products ODM — saw solid growth, while the specialty plastics business faced challenges due to uncertainty in the global automotive industry. D&L is pivoting by developing products for the electric vehicle market.