D&L Industries, Inc., a specialty chemicals and food ingredients manufacturer, is expecting continued exports growth to underpin rising profitability despite global economic uncertainties.

In a virtual media briefing Monday, D&L president and chief executive officer Alvin Lao projected healthy cash flows and sustained income growth, citing the company’s plan to ramp up manufacturing activity in its Batangas factory.

“As part of the efforts of ramping up production in our Batangas plant, we’re focusing on exports and, because of that, we are visiting clients in other countries, attending trade shows and exhibitions, to try and drum up business. Because of that, we are able to get new clients in new markets all the time,” Lao said.

The Batangas plant, which is D&L’s largest capital investment to date, has begun contributing to the bottom line faster than initially anticipated, helping the firm to counterbalance elevated operating and interest costs.

D&L reported a 10-percent year-on-year increase in net income for the first quarter of 2025, reaching P681 million, boosted by stronger demand and operation efficiencies from the Batangas facility.

The plant has already booked P246 million in net income for 2024, which began turning a profit just a year after operations started in July 2023.

“Management believes that with D&L’s product portfolio, the majority of which cater to basic and essential industries, the company will continue to grow and be relevant in an ever-changing business environment and world trade order,” Lao said.

“Over the longer-term, management has a lot of confidence that the new investments that the company has made over the past years will pave the way for higher and more sustainable profit growth,” he added.

Despite the global headwinds, including high inflation and geopolitical tensions affecting supply chains, D&L affirmed its commitment to shareholder returns by declaring total dividends of P1.52 billion this year, higher than the P1.49 billion dividends in 2024. 

D&L PHOTO