Metro Pacific affiliate Axelum Resources Corp., the country’s leading manufacturer and exporter of coconut food products, expects a stronger second-half performance after posting a six-percent improvement in net income to ₱220 million for the first semester of the year.

The firm informed the Philippine Stock Exchange (PSE) that it generated sales of ₱4.5 billion, up 40 percent from the first half of the previous year, driven by robust volume growth and higher average selling prices across most product segments.

Core white meat products including desiccated coconut, sweetened coconut, and coconut milk and cream, which accounted for more than half of total revenues, increased by 72 percent, seven percent, and 69 percent, respectively.

Coconut water, the fastest-growing product segment, grew by 28 percent and is on-pace to achieve record production output this year.

Per geography, Axelum registered double-digit growth for all key export markets, including the United States (US), Europe, Australia, and Asia, while domestic sales rose by 56 percent owing to broader distribution channels and an emerging institutional business.

“Rising demand continues to fuel heavy consumption of coconut-based products despite prolonged global supply shortfalls, resulting in unprecedented commodity prices,” said Axelum President and Chief Operating Officer (COO) Henry J. Raperoga.

He added that, “Looking ahead, we remain confident in our ability to capitalize on strategic market opportunities under these circumstances to anchor a stronger performance in the second half.”

Gross profit grew 31 percent to ₱961 million, leading to an earnings before interest, taxes, depreciation, and amortization (EBITDA) of ₱421 million, up nine percent compared to the same period last year.

In terms of operating margins, elevated input costs largely contributed to margin pressure, with average nut buying prices increasing more than two-fold for the period, mainly due to prevailing supply tightness.

For the remainder of the year, Axelum maintains a positive outlook on the back of strong mainstream demand for its products across major export markets.

On the other hand, Axelum said it will continue to closely monitor evolving macro developments particularly peaking coconut oil prices and newly imposed United States (US) import tariffs to effectively assess and minimize potential business impacts.

To date, Axelum is in the process of developing new retail offerings scheduled for launch in the coming months, aligned with its aggressive consumer-led strategy.