D&L Industries, Inc. (PSE: DNL) has released its financial results for the first quarter of 2026, showing that the company earned ₱717 million in profit. According to the company’s official disclosure filed on May 6, 2026, this represents a 5% increase compared to the same period last year and a 12% increase from the previous quarter.

Understanding D&L’s Business: What Does the Company Do?

Think of D&L Industries as a company that makes special ingredients and materials that other businesses need. Founded way back in 1963, they create:

• Food ingredients – special items that food manufacturers add to their products
• Plastics materials – specialized plastic components for various products
• Chemicals – particularly oleochemicals used in soaps, shampoos, and cleaning products
• Consumer products – they manufacture products for other brands (this is called ODM or Original Design Manufacturing)

The company has been listed on the Philippine Stock Exchange since December 2012 and is one of the largest suppliers in the industries it serves.

Breaking Down the First Quarter 2026 Results

Here are the key highlights from D&L’s performance in the first three months of 2026:

Profit Growth

The company’s net income of ₱717 million translates to earnings of ₱0.10 per share. This growth happened even during a difficult time when there was a war in the Middle East that affected global business operations.

Better Profit Margins

The company’s “gross profit margin” (which is like measuring how much profit they keep after paying for raw materials) improved:

• Overall margin increased by 0.7 percentage points compared to last year
• Their High Margin Specialty Products (HMSP) – which are their more profitable items – saw margins improve by 2.8 percentage points

Positive Cash Flow

D&L generated positive “free cash flow” of ₱339 million during the quarter. Free cash flow is the money left over after paying all expenses and investments. This is important because it means the company has extra cash available and doesn’t need to borrow as much money.

Improved Financial Health Indicators

The company’s financial health got better:

• Return on Equity (ROE) reached 12.2%, up 0.9 percentage points – this measures how well the company uses shareholders’ money to generate profits
• Return on Invested Capital (ROIC) reached 9.9%, up 0.6 percentage points – this shows how efficiently the company uses all its money (both borrowed and owned)
• Net gearing (how much the company borrows compared to what it owns) decreased to 90% from 98% at the end of 2025 – lower is better because it means less debt

What Challenges Did D&L Face?

According to company President and CEO Alvin Lao, D&L faced several difficulties during this period:

Raw Material Price Swings

Coconut oil, one of their main ingredients, had wild price changes. It stabilized at around $2,200 per metric ton during the quarter after a very unstable period. The company keeps about two months’ worth of inventory (stored materials) to protect itself from these sudden price changes.

Middle East Conflict Impact

The war in the Middle East caused crude oil prices to go above $100 per barrel and disrupted global supply chains. This affected several petrochemical-based materials (chemicals made from petroleum) that D&L uses.

Economic Pressures

The Philippines, which imports fuel from other countries, was negatively affected by oil price shocks. This raised food production costs and reduced customer activity in some parts of the food industry.

How Each Business Segment Performed

Food Ingredients – Challenging Start

This segment had a tougher quarter with volumes down 28% and revenues down 16% compared to last year, resulting in earnings dropping 69%. The company explains this was partly due to deliberately reducing sales of lower-profit products (“portfolio optimization”) and comparing against a very strong previous year. However, margins started improving compared to the previous quarter.

Chemrez – Strong Growth

This chemical business performed excellently, with earnings jumping 34% compared to last year. This growth came mainly from strong export sales of higher-value coconut-based products. The company’s Batangas plant, which is now fully operational, helps them serve more customers worldwide.

Specialty Plastics – Solid Performance

Earnings grew 22% thanks to 11% volume growth and better margins. Despite supply chain problems from the Middle East conflict, D&L proved it could reliably supply materials to its customers when others couldn’t.

Consumer Products ODM – Impressive Growth

This segment saw earnings surge 65% with 14% volume growth and 2.2 percentage point margin improvement. The new Batangas plant is helping boost production capacity.

Batangas Plant Milestone

An important detail mentioned in the report is that D&L’s Batangas plant has now been profitable for 6 consecutive quarters (1.5 years). This facility appears to be a significant investment that’s now contributing positively to the company’s overall performance.

Company Stock Activity

According to CEO Lao, Jadel (the Lao family’s holding company) has been buying more D&L shares, increasing its ownership by approximately 4.4% since the pandemic began. In 2025 alone, Jadel bought about 106 million shares, plus an additional 4 million shares in early 2026. Lao noted that at current stock price levels, D&L offers a dividend yield of approximately 5.9% based on last year’s dividends.

About D&L Industries

As of December 31, 2025, D&L had 7,142,857,990 common shares outstanding. The company is headquartered at 65 Calle Industria, Bagumbayan, Quezon City, and trades on the Philippine Stock Exchange under the ticker symbol DNL.

Management Outlook

Despite continued uncertainty from geopolitical tensions, high oil prices, inflation, and higher interest rates, CEO Lao expressed confidence in the company’s ability to navigate these challenges. He emphasized that D&L’s products serve basic needs, which provides stability even during difficult times, and that the company’s diversified business model allows strong segments to balance out weaker ones.

Lao also noted that supply chain challenges create opportunities for D&L to strengthen its position as a reliable supplier and trusted partner to customers needing customized solutions.

This article is based on D&L Industries’ official SEC Form 17-C disclosure filed on May 6, 2026.

This article is based on the company’s official press release and disclosures filed with the Philippine Stock Exchange’s Electronic Disclosure Generation Technology (PSE EDGE) system. For the complete and official version of the announcement, readers may visit the PSE EDGE website and search for the company’s filing directly.