MANILA — A top official of D&L Industries Inc. expressed optimism about the company’s business performance in the coming months, citing the decline in crude oil and coconut prices from previous highs.

During an online briefing, D&L president and chief executive officer Alvin Lao said crude oil prices have eased to around USD95 per barrel, down from about USD120 per barrel when tensions in the Middle East began.

He also noted that coconut prices have dropped by about 30 percent to around USD2,100 per ton from roughly USD3,000 per ton in August 2025.

Lao said coconut oil accounts for about 39 percent of the company’s raw material requirements.

He said the decline in input costs supports the company’s non-food segment while helping offset higher costs in its food-related operations.

“It’s hard to predict, but I think the worst is over with a lower price of crude oil,” he said when asked about the company’s outlook amid fluctuations in fuel and coconut prices.

“Thankfully we have our non-food side, which was up by a lot, and that growth more than offset the weakness or drop in the food side,” he added.

Lao said many of the company’s customers are involved in manufacturing plastics, packaging, and construction materials such as paints, which has led them to increase raw material inventories due to concerns over possible supply disruptions linked to the ongoing conflict in the Middle East.

He added that these manufacturers typically operate on strong margins, allowing them to absorb higher costs without affecting production levels.

On the biodiesel segment, Lao said D&L has not been significantly affected by shifts in demand amid the global transition to electric vehicles.

He explained that diesel consumption remains largely driven by public transportation and freight trucks, while private vehicles account for a smaller share of demand.