Axelum Resources Corp., a leading fully-integrated manufacturer and exporter of premium coconut products, said Monday it booked a net profit of P208.2 million in the first half, a sharp reversal from the P126 million net loss in the year-earlier period, on the back of strong revenue growth and tighter control on expenses.
Axelum, an affiliate of the MVP Group, said revenue rose 14 percent to P3.22 billion, driven by a significant rise in the volume of high-demand products such as desiccated coconut, coconut milk powder, and sweetened coconut. Expenses rose only 5.4 percent to P3.06 billion.
Higher revenue boosted gross profit by 50 percent to P735 million, with a gross margin of 23 percent.
Despite facing elevated input costs and lower average selling prices, the company managed to achieve these results due to the increased contribution from high-value products. EBITDA also saw a dramatic increase, climbing to P385 million from just P25 million in the previous year.
“We continue to build on our recovery momentum from the previous quarter. Additionally, we are witnessing growing demand for our products in key markets, particularly in Europe and Asia,” said Henry Raperoga, president and chief operating officer of Axelum.
“For the second half of the year, we aim to exceed our performance from the first six months, leveraging the summer peak in the United States and addressing year-end stocking requirements,” he added
Axelum has recently commissioned a new filling machine designed to enhance its production capabilities for coconut water by 30 percent annually. This upgrade comes in response to the increasing global demand for coconut water, a popular mainstream beverage.
The company has also secured a multi-year renewal contract with Vita Coco, the world’s largest coconut water brand, ensuring a major revenue stream for the long term. This strategic move underscores Axelum’s commitment to sustaining and growing its key revenue channels.
On the domestic front, Axelum’s local business experienced double-digit growth, driven by the relaunch of existing products, intensified promotional campaigns, and robust performance on online selling platforms. In addition, Axelum is developing several incubator concepts in the all-natural food category, aimed at both domestic and international retail markets. This initiative is part of the company’s broader strategy to explore new growth areas, leverage its core competencies, and enhance value creation.
Axelum’s performance in the first half of 2024 highlights the company’s strong market position and operational efficiency. With continued expansion into key international markets and strategic investments in production capacity and product development, Axelum is well-positioned for sustained growth and value generation in the coming months.
