Axelum swings back to profitability
Axelum Resources Corp., a leading maker of coconut products, returned to profitability in the first half as it witnessed stronger demand for its coconut meat business.
In a disclosure to the stock exchange, the company said it had posted P208 million in earnings in the first semester, a turnaround from the P126-million net loss a year ago that was blamed on “pandemic-induced shipping crisis.”
It generated sales of P3.2 billion, 14 percent higher than the P2.82 billion registered in the same period last year. Gross profit also ballooned by 50 percent to P735 million versus the P490.38 booked a year earlier.
Cash flow as measured by earnings before interest, taxes, depreciation and amortization also recorded significant growth to P385 million, from P25 million in the same period in 2023.
The manufacturer, which also exports premium coconut products, said its improved financial performance could be attributed to the “robust” growth of its “white meat” business, referring to desiccated coconut, coconut milk powder and sweetened coconut.
“We continue to build on our recovery momentum from the previous quarter. In addition, we are seeing rising demand for our products in other key growth markets, particularly in Europe and Asia,” said Henry Raperoga, president and chief operating officer of Axelum.
Raperoga expressed optimism that the company could surpass its first-half results as he sees opportunities to sell more during the United States’ summer season, as well as year-end customer stocking requirements.
Axelum recently commissioned a new filling machine to bolster its production of coconut water by a minimum of 30 percent every year, a bright spot for business growth as it continues to be a popular beverage in the market, the company said. The firm clinched in April another multi-year deal with Vita Coco, known as the world’s largest coconut water brand.
Axelum also seeks to create new revenue streams as it is “currently developing multiple incubator concepts in the all-natural food category” aimed for dispatch here and abroad.
In early 2023, infrastructure giant Metro Pacific Investments Corp. of billionaire Manuel V. Pangilinan acquired 34.76 percent of Axelum for P5.32 billion.
