D&L Industries Inc., the country’s largest food ingredients and oleochemical manufacturer, has benefitted from the government’s mandated increase in biofuel mix in the fourth quarter of 2024.

D&L president Alvin Lao said that the oleochemicals and other specialty chemicals business reported an 18 percent growth in revenues and 7 percent in net income.

For the full year 2024, D&L’s earnings improved by 2 percent to P2.34 billion from P2.29 billion in 2023.

For this year, Lao said he is “enthusiastically optimistic” about the company’s prospects for 2025, citing factors such as the increased demand due to the elections, the continued recovery of the tourism sector, and the potential for rate cuts. 

Chemrez Technologies, Inc., D&L’s biodiesel manufacturing unit and the country’s largest biofuel producer, also contributed 28 percent to the company’s total net income for 2024. This increased from its 27 percent share in D&L's earnings in 2023, even though the higher biofuel blend was implemented in Q4 last year.

On Oct. 1, 2024, the Department of Energy’s Circular 2024-05-0014 took effect, mandating an increase of coco methyl ester (CME) blend for all diesel fuel to at least 3 percent (B3) from 2 percent (B2).

“The commodity volume actually increased, particularly in food, as well as in biodiesel. They both increased volume by a lot,” Lao said.

The CME mix will further increase to 4 percent (B4) this year and 5 percent (B5) in 2026.

Lao added that with the foreseen higher demand for biofuel, there will be new suppliers and manufacturers coming in.

“We've heard there are new manufacturers, new companies coming in to enter the market. In our case, we're also increasing production by utilizing some of our other unused lines. So, the outlook, definitely there's growth,” he said.

D&L PHOTO