D&L unfazed by changing trade landscape

February 7, 2025 | 12:00am

MANILA, Philippines — D&L Industries Inc., the country’s leading specialty food ingredients and oleochemicals producer, has found a silver lining in the changing global trade landscape, especially with the apparent trade tensions between the US and China.

D&L said that it sees not just challenges but significant opportunities for companies that are equipped to navigate the changes effectively.

“In our view, the apparent trade tensions between the US and China present opportunities for companies like  us to supply to companies which cannot source from either the US or China,” D&L president and CEO Alvin Lao said.

Lao said the company’s new plant in Batangas gives D&L the capacity and capability to cater to bigger export customers.

“This puts us in a prime position to capture opportunities arising from the evolving international trade environment,” he said.

D&L said that its pricing structure and  ability to adjust its selling prices protect the company from wild swings in foreign exchange and commodity prices as volatility is expected in the near-term.

By leveraging on its research and development capabilities and value-add to customers, the company expects that it will be able to continue adjusting selling prices in the foreseeable future.

“In 2019, the trade war and the generally cautious sentiment globally had an impact on our exports, down 25 percent year-on-year that year,” Lao said.

“Since then, many companies globally have begun restructuring their supply chains to navigate around  possible future tariffs. With these adjustments, we anticipate a lesser impact on our export business this time around compared to 2019,” he said.

D&L said its export portfolio remains well-diversified, not relying predominantly on any single region.

Its export sales, which account for about 31 percent of total sales, are rooted in products where the company holds a competitive edge.

The company said that these include highly customized products with significant R&D input that are not easily replicable and products leveraging the Philippines’ natural resources, particularly coconut-based products.

“The products that we export are generally distinguished by their unique functional and technical properties, making D&L a go-to supplier for many global customers,” Lao said.

Lao said D&L is maintaining its guidance of reaching 50 percent export sales contribution to total sales over the medium-term with an aggressive export strategy and enhanced production capabilities.

D&L recorded a 38 percent year-on-year expansion in export sales during the first three quarters of 2024, driven by the exploration of new markets and a surge in global demand for coconut-based products.