Q3 2025 D&L Industries Inc Earnings Call Transcript
Key Points
- 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.
Hi, everyone. Good morning. Welcome to the third quarter results briefing of D&L Industries. To discuss the results, we have Mr. Alvin Lao, President and CEO of D&L Industries.
After his presentation, we will have a Q&A portion. I'll now hand over the presentation to Alvin.
Good morning, everyone. Thank you for joining us today for the results presentation for the third quarter of 2025.
So our highlights are that we were able to increase net income by 8% for the first nine months of the year. And compared to the third quarter last year, net income was higher by 12% for this year's third quarter. So we saw volume growth coming in at a pretty good level at 11%, up despite the much higher coated oil prices we're experiencing this year compared to previous years.
Our exports continue to do well with the growth in gross profits from exports. It's up by 22% year on year. Our
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