D&L Industries Inc. remains optimistic about its business prospects despite elevated inflation, higher interest rates and a weaker peso, after recording a 15 percent increase in net income during the first nine months of 2026.
In a disclosure to the Philippine Stock Exchange (PSE) on Friday, the specialty chemicals and food ingredients manufacturer reported net income of Php 2.24 billion from January to September, up from Php 1.95 billion in the same period last year.
The company also reported revenues of Php 735 million, a 32 percent increase from Php 554 million a year earlier.
“While the business environment continues to be challenged by unresolved geopolitical tension, local inflationary pressure, coupled with a depreciating peso and higher interest rates, the company was able to post earnings growth of 15 percent for the first nine months of 2026,” D&L president and chief executive officer Alvin Lao said.
The earnings growth came as Philippine inflation accelerated to 7.8 percent in September from 7.2 percent in August, bringing the nine-month average to 5.6 percent.
Inflation remained above the Bangko Sentral ng Pilipinas’ (BSP) target range of 2 to 4 percent, with monetary authorities attributing the acceleration largely to higher oil prices linked to tensions in the Middle East.
During an online briefing, Lao said the company’s operations have remained relatively resilient despite rising costs, higher borrowing rates and the depreciation of the peso.
He acknowledged that the economic environment remains challenging but expressed confidence in the company’s ability to withstand current interest rate levels.
“Ibang usapan if interest rates were at 20 to 30 percent. But if it’s a difference of 6 to 7 or even 8 percent, I think kaya pa natin,” Lao said.
He explained that interest rates reaching 20 to 30 percent would present a significantly greater challenge, while current levels remain manageable for the company.
Lao also cited declining global crude oil prices and the outcome of the United States midterm elections as developments that could help ease inflationary pressures.
He expressed hope that these factors would reduce the need for another BSP policy rate increase in December.
However, Lao warned that a strong El Niño could put additional pressure on food prices, potentially complicating efforts to bring inflation under control.
Despite these uncertainties, D&L Industries maintained that its earnings performance reflects the company’s ability to navigate difficult market conditions.
The company manufactures specialty products for the food, oleochemical and plastics industries.
