Metro Pacific affiliate Axelum Resources Corporation, the country’s leading fully-integrated manufacturer and exporter of premium coconut products, reported a core net loss of P158 million for 2023 from a net income of P983 million in 2022.

“The weaker-than-normal performance was mainly attributed to the pandemic-induced shipping crisis, which resulted (in) unusually higher customer inventory levels, combined with slower demand across key markets in the near-term,” the firm said in a disclosure to the Philippine Stock Exchange (PSE).

For 2023, Axelum generated sales of P5.7 billion, 19 percent lower than the P7.04 billion posted in 2022, primarily driven by the steady performance of its coconut water and coconut milk or cream segments.

Gross profit registered at P970 million, translating to a stable gross margin of 17 percent. Selling and general and administration expenses came in at P685 million and P456 million, respectively.

Excluding non-recurring charges, positive core EBITDA stood at P107 million, translating to a core net loss of P158 million. 

“The prior year saw a unique opportunity to revisit our fundamentals and strategies, as we gear up to restart our momentum in 2024,” said Axelum President and COO Henry J. Raperoga.

He noted that “to date, we are already seeing positive macro indicators particularly tempering inflation and anticipated interest rate cuts, which are seen to fuel consumer activity in our largest export market.”

For 2024, Axelum’s programmed capital spending is estimated at P350 million to P400 million to deploy additional capacity, equipment modernization and facility upgrades.

Recently, Axelum communicated its key strategies targeting high-value opportunities to anchor future growth.

First, Axelum is determined to further strengthen its institutional business by acquiring new customers through enhanced lead generation capabilities to penetrate unserved or underserved areas. 

Second, Axelum is aggressively pursuing new growth spaces to unlock the massive potential of its consumer business. At present, Axelum is developing multiple incubator product concepts aimed towards the all- natural retail market. 

Third, Axelum is set to relaunch its sustainability agenda which includes long-term objectives across its main pillars; education, livelihood, health and climate.