D&L Industries Inc., the country’s largest producer of oleochemicals and specialty plastics and food products, posted five percent improvement in net income to ₱717 million in the first quarter of 2026 as most of its businesses actually benefited from the Middle East conflict.

In a media briefing, D&L President and CEO Alvin D. Lao said first quarter profit is also 12 percent higher than what it generated in the fourth quarter last year despite the high uncertainty and volatility for the period due to the war in the Middle East.

“Earnings growth was mainly driven by the improvements in margins, as well as the consistent profitability at our Batangas plant, which booked its sixth consecutive profitable quarter,” he noted.

The firm’s domestic businesses saw stronger sales and earnings as customers front-loaded the purchase of non-food products that they use as raw materials as buffer against supply and price volatility.

Lao explained that their customers are buying as much stock as they can to ensure they do not run out of supplies as well as to lock in the cost since they expect prices to go up due to the Middle East crisis.

Revenues were lower by 10 percent at ₱12.83 billion due to lower exports and weaker food ingredients sales as a result of the effects of the ongoing crisis on consumer spending.

“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 pointed out.

The steep drop in the value of the Peso is also a “saving grace” for D&L’s exports which accounted for 24 percent of the company’s revenues in the first quarter, offsetting the lower export volumes due to the ongoing crisis.

Lao said that, “Despite a continued challenging first quarter, we delivered five percent earnings growth, underscoring the resilience of our business model. Over the past periods, we have navigated significant volatility—from a sharp surge in coconut oil prices, one of our key raw materials, to the recent oil price shocks arising from geopolitical tensions in the Middle East.”

The essential nature of D&L’s products, catering to basic needs, provides a stable foundation even during periods of disruption. At the same time, its diversified business model 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. 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,” Lao continued.

D&L’s food ingredients business saw a softer start to the year, with volumes declining 28 percent year-on-year (YoY) and revenues down 16 percent YoY, resulting in a 69 percent YoY drop in earnings.

This largely reflects ongoing portfolio optimization - the rationalization of lower-margin commodity exposure - as well as a high base in the prior period when volumes grew 33 percent YoY — a level not sustained this quarter amid external headwinds.

Chemrez sustained its strong growth momentum with earnings rising 34 percent YoY, building on an exceptional 96 percent YoY growth in 2025. This performance was driven primarily by robust export sales of higher value-added coconut-derived products, as the company continues to expand into new markets and develop broader product applications.

The Specialty Plastics segment delivered solid performance for the period, with earnings increasing 22 percent YoY, driven by 11 percent volume growth and a 0.4 ppt expansion in margins.

Consumer Products ODM delivered strong growth, with earnings rising 65 percent YoY, driven by 14 percent volume growth and a 2.2 ppt expansion in margins as the Batangas plant continues to ramp up.