Axelum Resources Corporation, a manufacturer and exporter of coconut products, reported a 265 percent jump in net income to P208 million profit in the first half of the year from a loss of P126 million in the same period of 2023.

In a disclosure to the Philippine Stock Exchange (PSE), the firm said it generated sales of P3.2 billion in the first half of 2024, up 14 percent compared to the P2.8 billion reported in the same period last year.

Axelum said this was primarily driven by the robust volume growth of its white meat business, which includes desiccated coconut, coconut milk powder, and sweetened coconut. 

Gross profit registered at P735 million, up 50 percent versus first half 2023, with gross margin translating to 23 percent despite elevated input costs and lower average selling prices, which was offset by the increased contribution of high-value products.

EBITDA (earnings before interest, taxes, depreciation, and amortization) posted at P385 million, significantly up from P25 million in the prior year.

“We continue to build on our recovery momentum from the previous quarter. In addition, we are seeing rising demand for our products in other key growth markets particularly in Europe and Asia,” said Axelum President and COO. 

He noted that “for the second half, we are aiming to outperform the first six months as we cater to the summer peak in the United States and year-end customer stocking requirements.”

To date, Axelum has commissioned its new filling machine that is expected to boost production capabilities for coconut water by at least 30 percent annually, to serve rapidly-growing demand for this popular mainstream beverage. 

Recently, Axelum signed a multi-year renewal contract with Vita Coco, the world’s largest coconut water brand, to secure one of its major revenue streams in the long-term.

Further, its local business grew double-digit for the period due to the relaunch of existing products, intensified promotional campaigns and strong performance of its online selling platforms. 

On the consumer space, Axelum is currently developing multiple incubator concepts in the all-natural food category targeted for domestic and international retail markets. 

This move is aligned with company's main strategy of pursuing new growth spaces to capitalize on its core competencies and maximize value creation.