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Net Income: Increased by 8% for the first nine months of the year; 12% higher in Q3 compared to last year.

Revenue: Up by 40% for the first nine months compared to last year.

Gross Profit from Exports: Increased by 22% year on year.

Export Revenues: Higher by 20%.

Volume Growth: Overall volume up by 11%; high-margin volume up by 14%; commodities volume up by 10%.

Commodity Revenue: Up by 75%.

Free Cash Flow: Improved from negative PHP3 billion to below PHP1 billion.

CapEx: Projected to be below PHP800 million for the full year.

Net Debt: PHP22 billion with an average cost of debt at 6.1%.

Cash Conversion Cycle: Improved to 117 days from 139 days last year.

Market Cap: Approximately PHP32 billion.

Dividend Yield: Approximately 4.7% based on current prices.

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Release Date: November 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

D&L Industries Inc (DLNDY) reported an 8% increase in net income for the first nine months of 2025, with a 12% increase in the third quarter compared to the previous year.

Export gross profits grew by 22% year-on-year, indicating strong performance in international markets.

The Batangas plant has been profitable for four consecutive quarters, ahead of initial expectations.

Revenue for the first nine months of the year increased by 40%, driven by price increases in raw materials.

The company has managed to improve free cash flow significantly, reducing negative cash flow from over PHP3 billion to below PHP1 billion.

Higher interest expenses due to increased borrowing for working capital requirements have impacted financials.

Gross profit margins have been affected by high coconut oil prices, with margins at their lowest since 2013 or 2014.

The high-margin food ingredients business saw a 66% drop in net income due to elevated coconut oil prices.

The Batangas plant's net profits were down quarter-on-quarter, influenced by lower food segment profitability.

The company faces challenges in maintaining high pricing as coconut oil prices decline, with potential impacts on margins.

Q: Given the recent pullback in coconut oil prices, do you see Q3 2025 as the bottom for gross margins? Is the worst over for working capital pressure? A: Yes, this is pretty much the lowest we've seen in terms of gross margins for a while. It's hard to see it getting any lower. It's really a factor of how our costs have moved and the price lag when we pass on higher prices. So it's not going to last definitely. (Alvin Lao, President, CEO, Director)

Q: How long does it usually take for coconut oil price changes to reflect in your financials? A: Normally, it's 30 to 45 days. However, with coconut oil, we have a lot of storage, and some inventory was bought months ago at higher prices. So while prices are coming down, the effect on our financials will take a bit longer. (Alvin Lao, President, CEO, Director)

Q: Have you had any pushback from clients due to price increases on high-margin products? A: Yes, there's always pushback when raising prices. However, the market has been used to paying higher prices over the last 12 months, which makes it easier to maintain higher prices even as costs decrease. (Alvin Lao, President, CEO, Director)

Q: What segments will drive growth in the near term? A: The high-margin side of our food ingredients business is expected to drive growth. Once margins normalize, the impact on profitability will be significant. (Alvin Lao, President, CEO, Director)

Q: How is the industry landscape in biodiesel? Any new capacity being planned by competitors? A: There are a couple of new companies, but competition hasn't dramatically increased. Demand remains steady due to the mandated 3% blend requirement. (Alvin Lao, President, CEO, Director)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.