Axelum’s Q1 profit falls 47%

Published June 28, 2020, 12:00 AM

by manilabulletin_admin

By James A. Loyola

Axelum Resources Corporation, the country’s largest fully-integrated manufacturer and exporter of coconut products, reported a 47 percent drop in net income to P120.9 million for the first quarter of 2020 from P226.4 million in the same period last year.

“After posting the highest level of profitability in our history last year, our growth momentum was interrupted by the outbreak of the COVID-19 health pandemic, which caused significant economic disruptions in most parts of the world,” said Axelum President and Chief Operating Officer Henry J. Raperoga.

From January to March, topline decreased by 6 percent to P1.20 billion from P1.28 billion for the same period last year.

The firm said the imposition of lockdown measures abroad and at home in response to the growing threat of community transmissions weighed down both the export and domestic businesses.
During this period, Axelum remained operational while intensifying its health and sanitation protocols aligned with government-mandated guidelines.

In terms of capital expenditure, Axelum intends to proceed with on-going targeted spending as the Company’s performance has steadily improved since the start of the COVID-19 crisis as the Company has adjusted to the new operating conditions.

Axelum said that, “Though COVID-19 impacted the financial performance for the first quarter of 2020, the long-term prospects of the Company remain intact, and even in this difficult year, the company remains on-track to produce and deliver at least 25 million liters of coconut water to anchor client Vita Coco this year.”

“Our long-term view on the coconut industry opportunity remains intact and our business plan remains the same with enough flexibility to cushion the prolonged effects of COVID-19. We shall keep growing our business organically and selectively consider acquisitions,” said Raperoga.(James A. Loyola)