D&L Industries expects stronger 2026 results

MANILA, Philippines – D&L Industries Inc. is confident about posting stronger financial results next year amid the rate-cut cycle and its robust export business.

This, as the firm’s bottom line in the first nine months rose by 8 percent to P1.95 billion this year from P1.81 billion amid the recent spikes in coconut oil prices.

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D&L processes this raw material to produce specialty products such as biodiesel, ingredients for food and personal care and chemical products.

“From what we see, interest rates are coming down, not just in the Philippines, but even in the US, and in other markets as well,” D&L president and CEO Alvin Lao told reporters in an online briefing.

“That usually has a big impact on the economy. So, from that perspective, 2026 should be better,” Lao said.

Benchmark rate

So far this year, the Bangko Sentral ng Pilipinas has reduced its benchmark interest rate by four times. The BSP is seen to implement further rate cuts as government spending slows down amid the flood control corruption scandal.

When borrowing costs are lower, consumers and businesses are more encouraged to take out loans and spend, subsequently raising the demand for goods and services.

Aside from this, Lao said the group is banking on its export performance, which is “continuing to do well.”

“We have a lot more (overseas) customers lined up and we have a lot more plans to continue to grow exports,” he said.

For 2025, the executive also expressed optimism that D&L can hit its 10-percent growth target.

Sales likewise jumped 40 percent to P41.29 billion from P29.48 billion.

Challenging year

“We do see 2025 being a challenging year, but because of the foundation that we have, investments in R&D (research and development) and a new plant in Batangas, we are able to weather the storm,” Lao said.

While coconut oil prices hit its record-high of nearly $3,000 per metric ton in the third quarter, the executive said D&L’s overall volume growth “remained resilient.”

During the January to September period, total volume climbed 11 percent year-on-year, helped by both high-margin specialty products and commodities.

D&L’s export revenues grew by 20 percent to P11 billion. The firm reiterated that its export business would continue to fuel its growth despite the controversial tariff policies of the United States.