D&L Net Income Up 12.3% in First Quarter

D&L Industries, Inc., the country’s largest specialty foods ingredients, plastics and oleochemicals firm, reported a 12.3% percent growth in net income to P744 million for the first quarter of the year due to strong performance of its high margin products.  In a press briefing, D&L President Alvin D. Lao said revenues improved 2 percent to P6.4 billion despite a 25 percent drop in coconut oil prices.  Coconut oil accounts for a large percentage of its food business. 

The High Margin Specialty Product (HMSP) segment continued its growth momentum, with volume rising 13 percent versus the historical average of 7 percent.  HMSP revenue contribution improved to 64 percent from just 58 percent in full year 2017.  The remaining 36 percent of revenues was accounted for by D&L’s commodity business that saw its margins improve meaningfully in the first quarter of 2018.  Exports as percentage of total revenue stood at 22 percent in the first quarter of 2018.  Export revenues dropped by 5 percent, normalizing from above-average growth last year.  Food and oleochemicals were the largest contributors to export revenue, each contributing 34 percent.