Batangas plant boosts D&L earnings

MANILA, Philippines — The Lao family-led D&L Industries Inc. ended 2024 with a better bottom line as its P10-billion Batangas plant churned in profits earlier than expected.

In a virtual briefing on Friday, D&L president and CEO Alvin Lao reported that their net income had risen by 2 percent to P2.34 billion last year, supported by total sales rising by 21 percent to P40.68 billion for the period.

The official also noted that its Batangas plant had already registered a P244-million net income. The company initially saw profitability to be achieved by 2025, or within two years of operations.

READ: D&L nears income target

“We are pleased to see our Batangas plant operations yielding promising results. This gives us the confidence that, over time, our industry-leading facilities will continue to play an increasingly significant role in boosting our overall net income,” Lao said.

“We believe that we have only just begun to tap into the plant’s potential given the vast opportunities we see in both local and international markets,” he added.

In his presentation, Lao showed that the Batangas plant had started 2024 with some losses but managed to rake in more revenues toward the end of the year.

The plant manufactures coconut-based food and oleochemical products for both local and export customers. It sits on a 26-hectare property in the First Industrial Township Special Economic Zone in Batangas.

Broken down, the domestic market accounted for the bulk of D&L’s revenues, rising by 16 percent to P28.3 billion last year. Export sales, meanwhile, grew by 37 percent to P12.4 billion.

Apart from coconut oil-derived ingredients, the company is also pushing for more finished products for the food, personal hygiene and home car segments in the export market.

“We see better earnings growth in 2025, underpinned by the continued ramp-up in Batangas plant, coupled with near-term catalysts such as the boost coming from election-related spending, the further increase in biodiesel blend and continued economic recovery,” Lao said.