D&L Q1 net income up 5% amid MidEast turmoil

D&L Industries Inc. has weathered the volatility caused by the Middle East conflict to post higher first-quarter earnings, buoyed by stronger demand for its industrial products and improved margins.

The listed manufacturer of specialty food ingredients, oleochemicals and plastics reported that its net income rose five percent to P717 million in the first quarter, driven largely by growth in its non-food businesses.

Earnings were 12 percent higher than the previous quarter due to resilience amid geopolitical tensions, elevated oil prices and currency volatility.

Earnings growth

At a media briefing on Wednesday, D&L president and CEO Alvin Lao said the earnings growth was driven by margin improvements and sustained profitability from the company’s Batangas plant, which recorded its sixth straight profitable quarter.

“The essential nature of our products and our diversified business model allow us to remain resilient even during periods of disruption,” Lao said.

Middle East conflict benefits demand for D&L products

The Middle East conflict boosted demand for D&L’s industrial products as customers stockpiled supplies and locked in prices amid fears of shortages and rising costs, driving double-digit growth in the company’s oleochemicals, specialty plastics and consumer products businesses.