D&L Industries Eyes Growth in 2025 with Easing Inflation, Higher Biodiesel Blend

D&L Industries Inc., a leader in food ingredients and industrial chemicals, is optimistic about its growth prospects in 2025, citing improved macroeconomic conditions and an increased biodiesel blend mandate as key drivers.

Economic Tailwinds

President and CEO Alvin Lao highlighted that easing inflation, which has freed up consumer spending, is expected to benefit the company.
“There’s more breathing room now for consumers, so hopefully it means more money to spend. If the economy is doing well, it should positively impact our company,” Lao said.

The inflation rate dropped to 2.9% in December 2024, bringing the annual average to 3.2%, well within the government’s 2%–4% target range.

Performance Outlook

After reporting flat earnings of ₱1.8 billion for January to September 2024 due to higher costs, D&L expects to exceed its ₱2.3-billion net income recorded in 2023, supported by stronger demand in late 2024.

Biodiesel Business Growth

The Department of Energy’s (DOE) mandate to increase the coco methyl ester (CME) blend in diesel fuels from 2% to 3% in October 2024 has already boosted D&L’s biodiesel operations. Lao revealed that the company’s plants have been operating at over 60% capacity, up from 40%, to meet rising demand.

Further increases in the CME blend are planned:

• 4% by October 2025
• 5% by 2026

Lao expects oil companies to start ramping up orders for the 4% blend around two months before implementation, driving D&L’s sales growth in Q3 2025.
“Demand is quite strong, and we are prepared to meet the increased requirements,” he said.