Axelum profits rise 21% in Q1
Coconut products exporter Axelum Resources Corporation reported a 21 percent growth in net income to P146 million in the first quarter of 2021 from the P121 million earned in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said sales rose 22 percent to P1.47 billion driven by the strong performance across all core product segments.
In terms of volume, desiccated coconut grew 19 percent while sweetened coconut, coconut milk powder and coconut water, increased 19 percent, 15 percent and 10 percent, respectively.
Recently, Axelum was granted a fresh four-year tax holiday for its new agglomerated spray-dryer which started commercial production in April 2021. This is set to double production capacity of its lucrative coconut milk powder business.
Aside from organic, dairy-free, gluten- free and corn-free permutations, Axelum is now equipped with the ability to create agglomerated or instant coconut milk powder versions.
“We are off to a strong start in 2021. Moving forward, we expect to benefit from continuing investments in capacity upgrades, plant modernization and pandemic response initiatives,” said Axelum President Henry J. Raperoga.
He added that, “These strategies will enable us to withstand prolonged uncertainties and sustain our growth momentum in the long term.” Global demand for desiccated coconut and sweetened coconut particularly in the United States, stayed resilient attributed to the sharp recovery of the food manufacturing, foodservice and retail sectors.
For coconut water, Axelum saw delivered volumes climb 10 percent owing to enhanced nut processing activities and higher water collection.
The firm said it has completed its state-of-the-art pressed coconut water plant to manufacture its latest beverage offering. Axelum has a pending application for qualified tax incentives as pioneer producer of pressed coconut water in the Philippines.
On the e-commerce front, Axelum reported a 104 percent jump in sales for the first quarter of 2021, while at the same time accounting for nearly half of total e-commerce sales in 2020.
Listed in Amazon USA under homegrown label Fiesta Tropicale, Axelum’s online products continue to gain massive growth traction in the American consumer space, specifically its desiccated coconut flakes.
Meanwhile, Axelum said it is actively incubating new product ideas coupled with ongoing projects to further strengthen manufacturing and warehousing capabilities.