Axelum allots P350 million for capex

MANILA, Philippines — Axelum Resources Corp., the listed manufacturer and exporter of world-class premium coconut products, is earmarking around P350 million for capital expenditures this year.

This would fund the company’s growth plans which include equipment modernization, capacity upgrades, plant improvements and new product research and development activities.

For this year, the company expects to resume its growth trajectory despite coming from a difficult business environment in 2020.

Axelum Resources Corp. president and COO Henry Raperoga said despite the challenges last year, the company was able to introduce new products.

“Last year, we capitalized on downtime at our manufacturing facilities driven by the COVID-19 pandemic to increase capacity in existing products and introduce new products, both of which will drive substantial growth in the future,” Raperoga said.

The company for instance commenced production of pressed coconut water, a proven high-demand product of Vita Coco, which offers a nuttier and sweeter taste than regular coconut water without adding sweetener.

Axelum is currently running at full capacity for its coconut milk powder, desiccated coconut, coconut water and coconut cream and milk production lines, signaling strong global demand for Axelum’s high-quality coconut products.

The company earlier doubled its capacity for coconut milk powder and improved milk extraction capabilities resulting in increased yields.

Moving forward, the company expects the coconut milk powder market to grow rapidly due to its broad commercial applications and increased demand for organic coconut milk powder as an ingredient for plant-based food products.

Axelum expects to register double-digit volume growth in its coconut water segment.

The company is also seeking to extend its market reach both domestically and overseas by appointing reputable distribution partners in identified key growth areas.

It continues to look for strategic and value-accretive targets for either an acquisition or joint venture.

“We are entering 2021 with a renewed sense of courage and optimism anchored on our collective efforts and various learnings from last year, which strengthened our character and resolve,” Raperoga said.

Axelum recently announced the extension of its share buy-back program amounting to up to P500 million until June 30, 2021.

To date, the company has purchased a total of 80.429 million treasury shares.