Axelum swings to profit in H1

MANILA, Philippines — Axelum Resources Corp., a listed integrated manufacturer and exporter of premium coconut products, swung to profit in the first half, driven by strong sales for the period.

Axelum reported a net income of P208.16 million during the first semester, a turnaround from the P125.97 million net loss incurred in the same period last year.

“We continue to build on our recovery momentum from the previous quarter,” Axelum president and COO Henry Raperoga said.

“In addition, we are seeing rising demand for our products in other key growth markets particularly in Europe and Asia,” he said.

Sales of the company in the first half rose by 14 percent to P3.22 billion from last year’s P2.82 billion on the back of robust volume growth of its white meat business including desiccated coconut, coconut milk powder and sweetened coconut.

Axelum’s local business grew by double digits for the period due to the relaunch of existing products, intensified promotional campaigns and strong performance of its online selling platforms.

For the second half, Raperoga said the company is aiming to outperform the first six months as it caters to the summer peak in the US and year-end customer stocking requirements.

Axelum has commissioned a new filling machine that is seen boosting production capabilities for coconut water by at least 30 percent annually.

This will allow the company to serve rapidly growing demand for the popular mainstream beverage.

Axelum also recently signed a multiyear renewal contract with Vita Coco, the world’s largest coconut water brand, to secure one of its major revenue streams in the long term.

On the consumer space, the company said it is currently developing multiple incubator concepts in the all-natural food category targeted for domestic and international retail markets.

According to Axelum, the move is aligned with its main strategy of pursuing new growth spaces to capitalize on its core competencies and maximize value creation.

Manuel V. Pangilinan-led Metro Pacific Investments Corp. (MPIC) sealed a P5.3-billion deal last December to acquire a stake in Axelum.

MPIC, through wholly owned subsidiary Metro Pacific Agro Ventures Inc., secured a 34.8 percent stake in the company.