Axelum Resources Corp. (PSE: AXLM), an affiliate of Metro Pacific Agro Ventures and the country’s leading fully-integrated manufacturer and exporter of premium coconut products, posted a turnaround in the first quarter of 2024 with a net income of P106 million from a loss of P69.26 million in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said that, for the period, it generated sales of P1.6 billion, up 16 percent compared to the same period last year, driven by double-digit volume growth across core product segments including desiccated coconut, coconut water and sweetened coconut.
Gross profit reached P392 million, up 60 percent versus first quarter 2023, due to the increased contribution of high-margin products. EBITDA grew to P196 million from P5 million year-on-year, as higher gross profit flowed through EBITDA.
“The results are within expectations of us resuming our growth trajectory this year. We are already seeing positive indicators of gradual market recovery despite the broad impacts of geopolitical tensions overseas, global supply chain disruptions and the prevailing El Niño season,” said Axelum President and COO Henry J. Raperoga.
To date, Axelum’s manufacturing capacity has been fully-allocated for the rest of the year on the back of a robust orderbook for both its white-meat and coconut water segments.
Moreover, Axelum recently inked a multi-year renewal agreement with Vita Coco, one of the world’s largest coconut water brands, to capitalize on rising mainstream demand for this popular coconut beverage.
Locally, Axelum continues to gain traction in its retail operations with online sales growing 42 percent, combined with existing product relaunches to further strengthen market presence.
Moving forward, Axelum said it is determined to build on this momentum with the planned rollout of new product offerings targeting the budding global health and wellness megatrend within the year.
In addition, Axelum is aiming to penetrate unserved geographies through enhanced customer lead generation capabilities.
“Historically, we start to accelerate our business in the second quarter in time for the summer peak in the United States. Overall, we are confident that our redefined strategies will enable us to continue seizing value-accretive opportunities in the long-term,” said Raperoga.