Axelum Resources Corporation, a coconut products manufacturer and exporter, is conducting a share buy-back program worth an initial P500 million over the next six months.

In a disclosure to the Philippine Stock Exchange, the firm said its board of directors has authorized the share buy-back program “to enhance shareholder value.”

The program will start on Sept. 25, 2024 and end on March 24, 2025 although the Axelum board may, at its discretion and upon management’s recommendation, extend the period by another six months to end on Sept. 24, 2025.

While the firm is authorized to buy back up to P500 million worth of common shares, this amount may be increased from time to time by its board of directors “as the circumstances may warrant and subject to the availability of unrestricted retained earnings.”

The actual number of shares to be included in the buy-back program cannot as yet be determined as this will depend on the total buy-back price of the shares.

Prior to the buy-back program, Axelum has an authorized capital stock consisting of five billion shares (4.8 billion common shares and 200 million redeemable preferred shares).

It has an issued and outstanding capital of 3.8 billion common shares and 200 million redeemable preferred shares as well as treasury shares of 201.59 million common shares.

Axelum said the buy-back program shall be executed in open market through the trading facilities of the PSE. It will be implemented in an orderly manner and should not adversely affect the Company’s and its subsidiaries’ prospective and existing projects.

The Company shall purchase the shares using cash and book them as treasury shares. The buy-back program shall be implemented under the supervision of the Company’s President and Chief Operating Officer.

Axelum posted 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.

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 including 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.