Axelum turns around in Q1 on higher sales

MANILA, Philippines — Higher sales helped Axelum Resources Corp. post a positive turnaround in the first quarter.

Axelum, a listed integrated manufacturer and exporter of premium coconut products, recorded a net income of P106 million during the period, a reversal of the P69-million net loss incurred in the same period last year.

The company generated sales of P1.6 billion, up 16 percent year-on-year, driven by double-digit volume growth across core product segments including desiccated coconut, coconut water and sweetened coconut.

“The results are within expectations of us resuming our growth trajectory this year. We are already seeing positive indicators of gradual market recovery despite the broad impacts of geopolitical tensions overseas, global supply chain disruptions and the prevailing El Niño season,” said Axelum president and COO Henry Raperoga.

Axelum plans to build on its first quarter momentum with the planned rollout of new product offerings targeting the budding global health and wellness megatrends within the year.

Further, the company targets to penetrate unserved geographies through enhanced customer lead generation capabilities.

“Historically, we start to accelerate our business in the second quarter in time for the summer peak in the United States,” Raperoga said.

“Overall, we are confident that our redefined strategies will enable us to continue seizing value-accretive opportunities in the long-term,” he said.

Axelum said its manufacturing capacity has been fully-allocated for the rest of the year on the back of a robust orderbook for both its white-meat and coconut water segments.

The company recently inked a multi-year renewal agreement with Vita Coco, one of the world’s largest coconut water brands, to capitalize on rising mainstream demand for this popular coconut beverage.

Locally, Axelum continues to gain traction in its retail operations with online sales growing by 42 percent year-on-year, combined with existing product relaunches to further strengthen market presence.

In December last year, Manuel V. Pangilinan-led Metro Pacific Investments Corp. sealed a P5.3-billion deal to acquire a stake in Axelum.

MPIC, through wholly owned subsidiary Metro Pacific Agro Ventures Inc., secured a 34.76- percent stake in the company.