Axelum Resources Corporation, the country’s leading fully-integrated manufacturer of premium coconut products, reported a 25 percent growth in net income to P181.93 million in the first quarter of 2022 from P145.6 million in the same period last year.
In a disclosure to the Philippine Stock Exchange, Axelum said it generated sales of P1.67 billion, up 14 percent from P1.47 billion, mainly driven by steady volumes and higher average selling prices of its core product segments.
Gross profit rose 16 percent to P432.16 million, with gross margin expanding to 25.9 percent from 25.3 percent, attributed to various production efficiencies and process improvements.
“We continue to service increasing requirements of our customers despite major shipping issues particularly irregular port calls, delayed container turnover, limited cargo space and international port congestion,” Axelum President Henry J. Raperoga.
He added that, “Nonetheless, we remain confident in maintaining our growth trajectory this year anchored on rising global demand for our products combined with our proven ability to operate under these challenging conditions.
To address the shipping situation, Axelum contracted strategically located third-party storage centers to immediately support its aggressive manufacturing pipeline.
The firm is currently extending its main warehousing facility to increase storage capacity by 30 percent. This project is scheduled to be completed by 2023.
In general, Axelum ships on a freight-on-board basis and is actively coordinating with major shipping partners for pre-booked space availability and negotiated rates for its customers.
For full year 2021, Axelum generated sales of P6.36 billion, up 23 percent from P5.17 billion, primarily driven by higher volumes and average selling prices across core product segments.
For white meat, desiccated coconut volume increased by 15 percent while sweetened coconut and coconut milk powder volumes grew in parallel by 7 percent.
Coconut water production remained at full-swing with delivered volume growth at 14 percent, eclipsing its previous high in 2020. Collectively, these core product segments accounted for 86 percent of consolidated topline.
Excluding benefits of prior tax incentives for its coconut water segment, net income still managed to grow by 36 percent to P715.33 million from P526.41 million.
Based on recent external data, Axelum grew market share for desiccated coconut, coconut milk powder and coconut water in the United States, its largest export destination.
For 2022, Axelum is incubating multiple all-natural shelf-stable products targeted for the American retail segment, with new product launches planned by the second half.
Programmed spending is set at approximately P300 million to P500 million to fund incremental capacity upgrades, construction of additional storage centers and other working capital requirements.
Axelum said it also intends to pursue strategic growth opportunities including value-accretive acquisitions or joint ventures.