Axelum Resources Corporation, the country’s leading fully-integrated manufacturer and exporter of coconut products, reported a 32 percent drop in attributable net income to P526.41 million last year from P774.81 million in 2019.
In a disclosure to the Philippine Stock Exchange, the firm said consolidated revenues marginally declined 3 percent to P5.17 billion year-on-year, attributed to the steady performance of coconut milk powder and desiccated coconut, and record volumes of coconut water, which grew 20 percent.
Axelum also marked a sharp rebound in the second half of 2020, overcoming considerable COVID 19- related headwinds, to notch 16 percent revenue growth compared to the second half of 2019.
“We managed to sustain our profitability by capitalizing on strategic opportunities during extra downtime to bolster manufacturing capabilities and develop new products to anchor long-term growth,” said Axelum President Henry J. Raperoga.
He added that, “At the same time, we strictly implemented health and sanitation policies to prevent virus transmissions, allowing us to operate continuously without interruption.”
To date, Axelum has reconfigured its nut opening facility to boost nut opening capacity by 42 percent, while staying compliant with physical distancing guidelines.
Likewise, milk extraction procedures were improved translating to increased manufacturing yields for coconut milk powder and coconut milk/cream. Construction of new warehouses is currently underway in anticipation of impending storage requirements.
For 2021, Axelum has allocated approximately P350 million in capital spending to fund on-going and planned plant enhancements, equipment upgrades, new product initiatives and other support projects.
In terms of distribution, Axelum is committed to broadening its market reach both domestically and overseas by appointing reputable distributors in high-demand areas.
Further, Axelum is evaluating potential international and local joint-venture partnerships for value-enhancing and strategic purposes.
“We shall apply the unique learnings of 2020 to further strengthen an already formidable company for the future. With profound faith and by God’s grace, we are fortunate that Axelum is in such a strong position and expect to achieve strong growth in 2021,” said Raperoga.(James A. Loyola)