D&L delivers higher profit as Middle East crisis boosted sales

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May 8, 2026 | 12:00am

MANILA, Philippines — D&L Industries Inc., the country’s largest producer of oleochemicals, specialty plastics and food products, managed to book a five percent increase in first quarter profit  to P717 million,  despite heightened  uncertainty and volatility during the period  stemming from the war in the Middle East.

The company attributed its earnings growth mainly to improvements in margins and to consistent profitability at its Batangas plant, which posted its sixth consecutive profitable quarter.

“Despite a continued challenging first quarter, we delivered five percent earnings growth, underscoring the resilience of our business model,” D&L president and CEO Alvin Lao said.

Stronger sales and earnings were recorded in the company’s domestic businesses, as customers front-loaded purchases of non-food products used as raw materials to buffer against supply and price volatility.

According to Lao, customers are buying as much stock as they can to ensure they do not run out of supplies and to lock in costs, since they expect prices to rise due to the Middle East crisis.

“We have higher volume sales for non-food businesses, with double-digit growth in revenues and net income for oleochemicals, specialty plastics and consumer products,” he said.

Lao said the essential nature of D&L’s products, which caters to basic needs, provides a stable foundation even during periods of disruption.

He said the company’s diversified business model also offers resilience, allowing strength in one segment to offset softness in another.

“While the operating environment remains uncertain – marked by geopolitical tensions, elevated oil prices, inflationary pressures and higher interest rates – we are confident in our ability to emerge stronger from each cycle,” Lao said.

“Periods of disruption also present opportunities. Ongoing supply chain challenges enable us to further solidify our position as a reliable supplier and trusted partner, supporting customers with customized solutions in an increasingly complex business landscape,” he said.