D&L netted 8% more in first six months

MANILA, Philippines — D&L Industries Inc. grew its first-half net income by 8 percent despite a challenging operating environment, helped by recovering margins in its food ingredients business, improving sales of higher-margin products and a stronger financial position.

On Wednesday, the listed specialty food ingredients and chemicals manufacturer said net income reached P1.5 billion in the first six months of 2026, up from P1.4 billion a year ago.

READ: D&L Q1 net income up 5% to P717M

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Second-quarter earnings likewise rose 10 percent year-on-year to P786 million. Sales in the first half inched up 1 percent to P26.8 billion.

The company said profitability improved as gross profit margins for its high-margin specialty products (HMSP) business expanded by 2.1 percentage points, supported by easing input costs and continued price pass-through.

HMSP also accounted for 51 percent of total sales, reflecting a shift toward higher-value products.

“The diversified nature of our business, coupled with the essential nature of our products, has enabled us to navigate volatility with resilience,” said D&L president and CEO Alvin Lao. “ Despite the headwinds, the company was able to grow its earnings by 8 percent in the first half of the year.”

Lao added that the gradual normalization of coconut oil prices has boosted the recovery of the food ingredients business, which he believes has already reached an earnings inflection point after a difficult period marked by volatile raw material costs.

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The food ingredients segment showed a marked improvement in the second quarter as margins recovered.

READ: D&L Industries expects stronger 2026 results

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Gross profit margins expanded on the back of stabilizing coconut oil prices and portfolio optimization efforts focused on higher-margin products, although first-half earnings for the segment were still 12 percent lower.

Beyond earnings growth, D&L also reported stronger cash generation. Free cash flow swung to a positive P2.3 billion in the first half from negative territory previously, aided by lower capital expenditures and easing commodity prices.

Looking ahead, Lao said the company remains confident about its long-term prospects despite macroeconomic uncertainties.

He said lower market valuations have created opportunities to acquire quality businesses at attractive prices. INQ