Q2 2026 D&L Industries Inc Earnings Call Transcript
Key Points
- Net income increased 8% in H1 2026 and 10% in Q2, driven by improved margins and product mix.
- High-margin specialty products (HMSP) now account for 51% of revenue, with gross margins improving to 21.4% in Q2.
- Free cash flow turned positive due to lower CapEx and reduced working capital needs, improving net gearing to 91%.
- The Batangas plant has delivered seven consecutive quarters of positive net income, with continued ramp-up.
- Specialty plastics and consumer products ODM segments showed strong growth, with specialty plastics posting the highest gross margins.
- Export sales remain challenging due to volatile peso, trade barriers, and global uncertainty, with a drop in export volumes.
- Food ingredients business saw a 42% volume decline in H1, though Q2 net income improved 75% from a low base.
- Net debt remains high at P20.6 billion, with interest cover at 3.9x and average cost of debt rising to 5.9%.
- Coconut oil prices, though down from record highs, are still elevated and volatile, impacting working capital and margins.
- The company faces uncertainty from the ongoing Iran war, which could disrupt supply chains and increase costs.
Hi. Good morning, everyone, and welcome to the first half of 2026 Analyst Briefing for D&L Industries.
My name is John Cosico.
I'm currently helping out D&L Industries while Chrissa is on maternity leave.
And with us today to present the company's first half results for 2026 is our President and CEO, Mr. Alvin Lau. Alvin.
Thanks, Joanne.
Good morning, everyone. So we're going to go through the first half results of D&L.
So we have five highlights here on the screen.
Number one, we reached.
Net income of P1.5 billion for the first half of 2026.
This is 8% above last year's.
For the second quarter, we actually saw an increase of 10% net income over the same period of last year at P786 million. And we'll go through more details in the next couple of slides.
Bullet point number two, in terms of what we refer to as HMSP or high margin specialty products, we saw margins
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
