Manila: Supply concerns stemming from the Middle East crisis boosted the net income of publicly listed D and L Industries Inc. (D and L) by 5 percent year-on-year to PHP717 million, driven by customers front-loading their orders.

According to Philippines News Agency, D and L Industries Inc. is the country's largest domestic producer of oleochemicals, specialty plastics, and coconut-based food products. In an online briefing Wednesday, company president and chief executive officer Alvin Lao stated that net income in the first quarter was also 12 percent higher compared to the previous three months.

Lao explained that earnings growth was mainly driven by improvements in margins and consistent profitability in their Batangas plant, which booked its sixth consecutive profitable quarter. The company recorded stronger sales in non-food products used as raw materials, as customers increased inventories to manage supply risks and price volatility.

Lao noted higher volume sales for the non-food business, with double-digit growth in revenues and net income for oleochemicals, specialty plastics, and consumer products. He also mentioned that the depreciation of the Philippine peso against the US dollar supported the company's performance, with exports accounting for 24 percent of revenues as of end-March this year.

Despite the uncertain operating environment marked by geopolitical tensions, elevated oil prices, inflationary pressures, and higher interest rates, Lao expressed confidence in the company's ability to emerge stronger from each cycle. He highlighted that periods of disruption present opportunities, enabling the company to solidify its position as a reliable supplier and trusted partner, supporting customers with customized solutions in an increasingly complex business landscape.