D&L Industries Inc. reported a P2.3 billion recurring net income, up 2% from the previous year despite higher costs and interest expenses from its new Batangas plant.

The company reported a 5 percent increase in fourth-quarter earnings, reaching P530 million, as the Batangas facility began contributing to the business.

“We believe that our Batangas plant will keep contributing to our profits, and we see many opportunities both locally and internationally,” D&L president Alvin Lao told reporters on Friday. 

The Batangas plant became profitable in 2024, generating a P244 million profit for the year.

“The plant exceeded expectations, reaching profitability faster than planned. This success is seen as a sign that the plant will continue to help increase D&L’s overall income,” Lao added. 

The plant has already begun fulfilling orders for local and export clients and is working on certifications to attract even more business.

Looking ahead to 2025, Lao expects stronger earnings growth, driven by ongoing improvements at the Batangas plant, election-related spending, and increased demand for biodiesel.

Exports played a key role in D&L’s growth, with sales reaching P12.4 billion—an impressive 37 percent increase from the previous year. Domestic sales also rose by 16 percent, although profits fell by 4 percent.

Lao noted that exports have become an essential income stream for D&L, offering higher profit margins. 

The company’s focus on high-value coconut oil-based products has been key, as more consumers shift away from palm oil and petroleum-based alternatives due to environmental concerns.

While potential tariffs could create some short-term volatility, Lao emphasized that D&L’s pricing flexibility protects it from major swings in forex and commodity prices. 

“In our view, the apparent trade tensions between the US and China present opportunities for companies like us to supply to companies who cannot source from either the US or China. Our new plant in Batangas gives us the capacity and capability to cater to bigger export customers,” he said.