D&L Industries, Inc. (DLNDY) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning. Welcome to the second quarter briefing of D&L Industries. To discuss the results today, we have Mr. Alvin Lau, President and CEO of D&L Industries. After the presentation, a Q&A will follow. So I'll now hand over the presentation to Mr. Alvin Lau. Hi, everyone. Good morning. Thanks for joining us. So today we will be discussing the second quarter and first half results of TNL. So First, we go to the highlights. We can see that first half net income came in at positive 6% year on year to 1.4 billion pesos. So a lot of it is attributed to the good performance of the Batangas plant. So first half net income up by 6%. In the second quarter, net income was up by 2% to 714 million pesos. And so what happened in the second quarter is that coconut oil prices went up, continued to go up, but we believe it has already peaked. But that increase in coconut oil prices increased. resulted in very high costs for us and that had a very big effect or impact on us. Bullet point number two, we're very pleased to see that margins started to pick up with high margin specialty product margins up by almost 4% quarter-on-quarter and blended GPM up by 2.5% quarter-on-quarter. In terms of Exports, it continues to grow with gross profits up by 30% year on year so far in the first half. And we are also seeing our exports contributing quite a lot in terms of gross profits. So currently, gross profit contribution is at 38% for the period, just coming from exports. Our return ratios continue to improve with return on equity at 12.9%, return on invested capital at 10.1%. So both significantly better compared to end of last year. And then finally, we are seeing a better second half, and we are optimistic on achieving what we have set out before, which is a double-digit net income growt...