Axelum Resources Corporation, the country’s leading manufacturer and exporter of coconut products, reported a 51 percent jump in net income to P578.69 million in the first nine months of 2021 from P383.10 million in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said the hike in earnings was achieved despite the expiration of tax holidays for its coconut water business earlier this year.

“Through nine months of 2021, we have already outperformed our full year 2020 earnings. Based on this trajectory, we expect 2021 topline to exceed pre-COVID levels and profit to be similar or above 2019 record income in spite of significant headwinds such as the global shipping shortage and without the tax holidays availed up to January 2021,” said Axelum President Henry J. Raperoga.

For the period, Axelum generated sales of P4.79 billion, up 28 percent from P3.75 billion, driven by double-digit volume growth across all core product segments.

Desiccated coconut volume increased 20 percent while coconut water continues to deliver robust volume growth at 18 percent. Sweetened coconut and coconut milk powder volumes grew 21 percent and 12 percent, respectively.

In total, these product segments accounted for 86 percent of topline.

In 2021, Axelum’s nut opening plant has been processing 21 percent more coconuts per day, to meet rapidly- growing demand for its products.

In addition, the firm is currently producing at maximum output for its main product segments, translating to continued sales growth in 2022.

Axelum is expected to finish the construction of additional warehouses by early next year to augment storage capacity.

Notably, the company is starting to benefit from various strategic initiatives undertaken in 2020 including enhancing milk extraction and water collection rate, resulting to higher yields and overall margin improvement.

Axelum’s major export markets comprised of the United States, Europe, Australia and Asia, which collectively constitute around 90 percent of total sales, have gradually reopened to stimulate economic activity across various industries including the food manufacturing, foodservice and retail sectors.

Moreover, evolving consumer preferences for healthier alternatives has spurred demand for coconut products due to its known anti-viral and anti-inflammatory properties.

As of September 2021, online sales from Amazon USA have eclipsed total online sales in 2020, while combined average monthly sales from local e-marketplaces Shopee and Lazada, have increased four- fold since listing in April.

Axelum was granted fresh tax holidays by the Board of Investments starting May 2021 for agglomerated coconut milk powder and other plant-based infused coconut milk powder products and starting July 2021 for organic/non-organic plant-based infused coconut drinks/juices.

The full impact of these new tax incentives are expected to be realized by 2022.

Meanwhile, Axelum is in the process of completing the remaining requirements to finalize its application as a pre-approved entity with the Philippine Economic Zone Authority (PEZA).