D&L posts higher income in Q1

MANILA, Philippines —  Uncertainties surrounding US tariff policies are keeping D&L Industries Inc. cautious, but it remains optimistic that its growing exports will remain as a key growth driver for the company.

D&L president and CEO Alvin Lao said that while volatility is likely to persist in the near-term, the company remains unfazed and continues to focus on building resiliency and long-term growth strategies.

“We believe that with our product portfolio, the majority of which cater to basic and essential industries, we will continue to grow and be relevant in an ever-changing business environment and world trade order,” Lao said.

Despite some hesitation due to the uncertainty and because consumers will have to shoulder the uptick in prices as a result of the higher tariff, Lao said that D&L’s customers in the US continue to order products from the company.

However, Lao said D&L exports its products to many countries and the US is not a large market for the firm.

“Our exports to the US are equivalent to roughly three percent of our total revenues. We have 97 percent of our revenues that are not affected by the US tariffs,” he said.

For the first quarter, D&L earnings grew by 10 percent year-on-year to P681 million as the firm’s Batangas plant continues to ramp up operations.

Total volume growth for the quarter went up by 33 percent year-on-year although rising commodity prices tempered its potential positive effect on net income.

Exports continued its positive momentum in the first quarter, booking a total sales of P4.8 billion, 69 percent higher year-on-year.

“The year started with strong momentum. However, the increasing global uncertainties have led to a noticeable slowdown and dampening of global business sentiment,” Lao said.

“Nonetheless, the Philippines may be one of the least affected countries given its import-heavy trade balance. In addition, the lower proposed reciprocal tariff for the Philippines versus its neighboring countries may put the Philippines in an advantageous position,” he said.