Axelum Resources, the country’s leading fully-integrated manufacturer and exporter of coconut products, is expecting its coconut milk powder segment to fuel revenue growth.

In a disclosure to the Philippine Stock Exchange, the firms aid organic coconut milk powder is a fine, creamy white meat substance squeezed from fresh coconut milk that is dairy-free and made from all-organic components.

It is primarily used as a culinary ingredient for baked goods, curry dishes, packed food sauces and confectioneries.

Organic coconut milk powder is also utilized as a raw input for collagen-based products, which according to the same source, is forecasted to have a global market size of $7.5 billion by 2027, expanding at a pace of 6 percent compounded annual growth rate.

In response to growing demand, Axelum has increased its production capacity of organic coconut milk powder to up to 1,500 metric tons annually.

This was required not only because of the strong growth prospects of the industry but also specific customer needs including one of the largest and fastest growing American collagen brands, which is penetrating into Asia and Europe, has sought Axelum’s support in adding capacity to be able to service their organic coconut milk powder requirements.

“The continued demand for coconut milk powder for traditional and new applications presents an exciting growth opportunity for Axelum. Organic coconut milk powder remains one of our most profitable products given its unique characteristics and premium pricing,” said Axelum President Henry J. Raperoga.

For the first nine months of 2020, coconut milk powder segment accounted for 15 percent of Axelum’s revenue.

The firm posted strong topline and profitability with sales of P1.37 billion and a net income of P180.16 million for the third quarter of 2020.

Sales of P1.37 billion was higher by 4 percent from the P1.32 billion in the third quarter of 2019 driven by strong global market demand across all product segments particularly coconut water and coconut milk powder.

The Company was able to grow despite being more cautious in booking desiccated coconut orders during the second quarter for delivery in the third quarter as the Company wanted to ensure it could still deliver for key clients even if COVID-19 disrupted operations leading to lower output.

Axelum also grew despite peso appreciation, which reduces revenues as the majority of Axelum’s sales are overseas.(James A. Loyola)