D&L Industries Inc., the country’s top specialty food ingredients and oleochemicals producer, is confident of hitting and even exceeding its 10-percent profit target for 2025 as annualized first-half earnings are already tracking a 19-percent improvement on the back of exports driving growth.

“For now, we’re sticking to double-digit growth… But, if anything, knock on wood, it seems we have a higher chance of exceeding rather than going below that income target,” said D&L President and Chief Executive Officer (CEO) Alvin D. Lao in a media briefing.

He explained that, “For last year, D&L’s net income was ₱2.34 billion. For the first six months of 2025, we already hit ₱1.396 billion. So, if you just annualize that, it’s roughly ₱2.8 billion, we’re at something like 19-percent above last year’s net income.

“So, if we just did the same net income in the second half versus the first half, we’ll be well above the 10-percent gross net income. It’ll be 19 percent. So, we’ll see.”

Lao said they expect to sustain this growth in the second half since inflation has gone down compared to the first semester, while interest rates are also expected to be cut. He said both factors should result in higher consumer spending, which will benefit D&L and its customers.

He also noted that United States (US) tariffs will not have much impact on the company’s exports since the US market accounts for only three percent of revenues, with 25 percent coming from its other export markets such as the Asia-Pacific region—from China all the way down to Australia and New Zealand—as well as Europe, Latin America, and even Africa.

Moreover, the majority of products sold to the US are valued for their distinct technical and functional attributes; thus, demand is seen to be sustained.

D&L reported a six-percent growth in recurring net income to ₱1.4 billion in the first half of 2025 from ₱1.32 billion in the same period last year. Second-quarter earnings improved two percent to ₱714 million.

The growth in earnings was mainly driven by the consistent quarterly profitability of the Batangas plant and the robust exports business amid elevated coconut oil prices.

“The second quarter proved challenging amid record-high coconut oil prices. Nonetheless, the company delivered a modest two-percent year-on-year growth for the quarter.

“With coconut oil prices appearing overstretched, the second half is expected to benefit from more stable and potentially lower prices, supporting a stronger earnings performance compared to the first half. We maintain our outlook for double-digit net income growth for the year,” Lao said.

He noted that, “Our focus remains on executing our growth strategy, expanding into new markets, and strengthening our competitive position to capture the significant opportunities we see both locally and globally. We are committed to delivering sustainable value for shareholders and remain confident in the company’s long-term prospects.”

Just two years into commercial operations, D&L’s Batangas plant has already posted profits for three consecutive quarters. In the first half of 2025, the plant booked an income of ₱597 million, up by more than three-fold from the same period last year.

This came in ahead of management’s initial expectations of merely achieving break-even in the first two years of operations.

The export business continues to deliver, with revenues growing by 18 percent year-on-year to ₱7.4 billion in the first six months of the year. Meanwhile, exports’ gross profits grew by 30 percent year-on-year in the first half of 2025, faster than the 15-percent year-on-year growth in gross profits recorded by the domestic business.

As part of its strategy to further grow its exports business, D&L is actively exploring new markets and applications—particularly those where coconut oil’s natural and sustainable profile serves as a key competitive advantage.

In the first half of 2025, exports contributed 28 percent to the company’s total revenues. Management aims to increase this share to 50 percent over the medium term. Notably, exports already account for approximately 38 percent of total gross profit, reflecting the higher gross profit margin (GPM) of exports.