Listed D&L Industries Inc., a specialty food ingredients and oleochemicals producer, is cautiously optimistic to enter 2024 as economic and business challenges continue to linger. 

However, D&L president and CEO Alvin Lao is banking on the anticipated stable interest rates and raw material costs to help stir the company's growth. 

"This year, we were hit not just with the higher interest rates, we were also hit by higher costs. A lot of raw material prices were moving up. And then there were a lot of increases in minimum wage and labor. For us, another factor was expenses for the new plant and equipment," Lao said in an interview with reporters. 

"Next year, it will still be challenging, but my assumptions are rates and costs are going to be the same level as this year," Lao said.

El Niño remains a threat

Meanwhile, Lao noted that the El Niño phenomenon, if it worsens, may also become a challenge for the company as it might affect the raw cost of coconut oil, a vital ingredient for its products. 

Amid the potential challenges, D&L said it remains bullish on expanding its business with more production lines through its new Batangas plant.

"A lot of our customers need to certify the new plant. A lot of them want to come down physically to walk around in the loop to make sure everything is moving. So, it takes time," Lao said. 

He added that even existing export customers the firm is servicing in its old facilities will need to recertify D&L because of the new plant.

D&L's Batangas plant is more than double the capacity of all of the firm's existing facilities combined.

"It's setting us up for growth over, not just the next year or two, but for a much longer timeframe. It's a good foundation for us to add a lot more volume and business," Lao said.

Additionally, D&L is also expecting that the planned increase in the biodiesel blend next year will help boost its business unit.