D&L Industries FY24 Earnings Up 2% YoY to P2.3 Billion

D&L Industries’ recurring income reached P2.3 billion, or earnings per share of P0.327, in full year 2024 (FY24). This is higher by 2% year-on-year (YoY). In the fourth quarter alone, earnings stood at P530mn, up 5% YoY and 7% quarter-on-quarter (QoQ).

Despite the higher operating and interest expenses associated with the Batangas plant, the continued ramp up in operations helped offset the incremental expenses, allowing the plant to book its first full year profit which stood at P244mn.

“We are pleased to see our Batangas plant operations yielding promising results. This gives us the confidence that, over time, our industry leading facilities will continue to play an increasingly significant role in boosting our overall net income. While it is still possible to see quarterly swings in profitability given the early stages of operations - going forward, we expect it to start contributing consistently to our bottom line. We believe that we have only just begun to tap into the plant’s potential given the vast opportunities we see in both local and international markets,” remarked D&L President & CEO Alvin Lao. 

"With earnings in the fourth quarter showing increases both year-over-year and quarter-over-quarter, it appears that momentum is coming back. We see better earnings growth in 2025 underpinned by the continued ramp up in Batangas plant coupled with near-term catalysts such as the boost coming from election-related spending, the further increase in biodiesel blend, and continued economic recovery,” Lao added.

“With strong conviction on the long-term prospects of the business, we continue to buy shares at current levels. Since 2020, the Lao Family, through its holding company Jadel, has acquired another 2.2% of D&L’s outstanding shares,” Lao continued.

With steady and consistent ramp up in operations, the new plant in Batangas turned profitable for the full year. This is ahead of the initial schedule of within two years of operations which was based on the performance of the older plants that the company had built over the years. 

The new plant booked a net profit of P244 million for the full year, as it swung back to profitability in 4Q24 coming from a loss in 3Q24, which was dragged down by incremental expenses coming from newly installed lines. D&L expects income from the new plant to continue to increase over time as new orders come in. 

To date, the new plant has successfully fulfilled several orders for both local and export customers. Several audit and certification processes are ongoing in order to on-board more customers.

Exports continued its positive momentum well into the full year booking a total sales of P12.4 billion, which is higher by 37% YoY. Meanwhile, export gross profits also jumped by 37% YoY over the same period. This is a bright spot amidst a generally cautious consumer sentiment in the domestic market in which sales only grew 16% YoY while gross profits were down 4% YoY. 

The export business provides a strategic revenue diversification for D&L. The potential upside can be far greater than the domestic business based on just the sheer size of the addressable market. In terms of gross profit margins (GPM), the export business also has better margins (18.1% vs 14.1% for the domestic market) as the company mainly focuses on exporting higher value-added products where it has the competitive advantage in. 

Natura Aeropack Corporation (NAC) and D&L Premium Foods Corp (DLPF), the operating companies behind D&L’s Batangas plant, are aggressively pushing high-value added coconut oil-derived ingredients and finished products for the food, personal hygiene, and home care segments in the export market. With the increasing concern on the massive deforestation associated with the use of palm oil and the depletion of non renewable energy sources and high carbon footprint associated with the extraction and use of petroleum, coconut-derived ingredients offer an excellent natural, organic, and sustainable alternative for many industries and applications.

D&L Industries is a Filipino company engaged in product customization and specialization for the food, chemicals, plastics and consumer products ODM industries. The company’s principal business activities include manufacturing of customized food ingredients, specialty raw materials for plastics, and oleochemicals for personal and home care use. Established in 1963, D&L has the largest market share in most of the industries it serves, as well as long-standing customer relationships with the Philippines’ leading consumer and manufacturing companies. It was listed on the Philippine Stock Exchange in December 2012.