Export-driven growth continues to propel D&L Industries Inc., with the listed producer of specialty food ingredients and oleochemicals expressing optimism that 2026 will be a stronger year as global economic conditions improve.

“From what we see, interest rates are coming down, not just in the Philippines, but even in the US and in other markets as well. That usually has a big impact on the economy. So, from that perspective, 2026 should be better,” D&L President and CEO Alvin D. Lao told reporters at a media briefing on Wednesday.

Exports rose 20 percent in the first nine months of the year, driving a 22 percent increase in gross profits. Export sales hit P11 billion, or 27 percent of total revenues, with the company aiming to lift this share to 50 percent over the medium term.

“You can see that our exports are continuing to do well. We have a lot more (overseas) customers lined up and we have a lot more plans to continue to grow exports,” Lao said.

D&L posted recurring income of P1.95 billion, or earnings per share of P0.273, during the period, up 8 percent year-on-year.

Overall volumes increased 11 percent, supported by both high-margin specialty products and commodities, despite a 78 percent year-on-year surge in coconut oil prices.

“The operating environment remains challenging, with coconut oil prices reaching a new all-time high in the third quarter. At its peak, prices have nearly tripled from the lows recorded just two years ago,” Lao said. 

“Despite this, we delivered an 8 percent earnings growth for the period—driven mainly by healthy volume expansion, which underscores the fundamental strength of our business,” he added.

The company said it expects margins to recover once raw material prices normalize.

Across its segments, performance was mixed. The Food Ingredients division’s earnings fell 66 percent despite a 7 percent increase in volume, while Chemrez’s net income surged 88 percent on the back of 30 percent higher volumes.

Specialty Plastics managed a modest 2 percent earnings increase, and the Consumer Products ODM division climbed 50 percent, boosted by the ramp-up of the Batangas plant and expanding export sales.

D&L’s financial position remained sound, with a net gearing ratio of 99 percent and interest coverage at three times as of September. Capital expenditures totaled P568 million during the first three quarters.