Robust demand for coconut-based products lifts Axelum H1 profit
Manuel V. Pangilinan-backed Axelum Resources Corp. expects strong demand for coconut-based products to carry its growth prospects for the rest of the year after seeing a better first semester, hinting at “new retail offerings” in the next few months.
In a regulatory filing on Monday, Axelum said its earnings in the January to June period had grown by 6 percent to P220.5 million because of high demand.
Its sales had likewise surged by 40 percent in the January to June period to P4.5 billion on the back of robust volume growth and higher average selling prices across most of its product segments.
“Rising demand continues to fuel heavy consumption of coconut-based products despite prolonged global supply shortfalls, resulting in unprecedented commodity prices,” Axelum president and chief operating officer Henry Raperoga said in a statement.
White meat products—desiccated coconut, sweetened coconut and coconut milk/cream—accounted for more than half of the company’s total revenues and increased sales by 72 percent. Coconut cream sales likewise ballooned by 69 percent, while reduced-fat coconut nearly tripled its sales in the period.
Coconut water sales, meanwhile, jumped by 28 percent on higher volumes.
Geographically, the US market, one of the main recipients of Axelum’s coconut water supply, grew by 47 percent, while Australia surged by 65 percent. The Philippine market also rose by 56 percent because of higher volume orders and selling prices.
Axelum last year signed a multiyear supply deal with US coconut water brand Vita Coco, one of the most popular products in the category, making it a major client.
Riding on the momentum, Axelum said it was “in the process of developing new retail offerings,” which are scheduled for launch “in the coming months.”
“For the remainder of the year, Axelum maintains a positive outlook on the back of strong mainstream demand for its products across major export markets,” the company noted, adding that it would monitor the impact of macroeconomic developments on its business.
