Coconut product processor Axelum Resources Corp. reported a net profit of P208 million, representing an impressive 265 percent increase compared to the P126-million loss incurred during the same period last year.
In a stock exchange report on Monday, the firm attributed the primary growth driver to the robust volume expansion of its white meat business, encompassing desiccated coconut, coconut milk powder, and sweetened coconut products.
“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,” Axelum president and chief operating officer Henry Raperoga said.
“For the second half, we aim to outperform the first six months as we cater to the summer peak in the United States and year-end customer stocking requirements,” he added.
From January to June, Axelum generated sales of P3.2 billion, 14 percent higher than the P2.8 billion reported last year.
Profit lifts 50%
Likewise, gross profit surged by 50 percent year-over-year, reaching P735 million in the first six months.
Despite elevated input costs and lower average selling prices, the gross profit margin remained robust at 23 percent, primarily driven by the increased contribution of high-value products.
Meanwhile, EBITDA (earnings before interest, taxes, depreciation and amortization) experienced substantial growth, rising from P25 million in the previous year to P385 million, demonstrating improved operational efficiency.
Axelum has recently commissioned a new filling machine that is anticipated to enhance coconut water production capacity by at least 30 percent yearly, catering to the rapidly increasing demand for this mainstream beverage.
To ensure long-term revenue generation, Axelum recently secured a multi-year contract renewal with Vita Coco, the world’s leading coconut water brand.
Axelum’s local business experienced double-digit growth during the period, driven by existing product relaunches, intensified promotional campaigns, and the impressive performance of its online selling platforms.
In the consumer sector, Axelum said it is actively developing multiple incubator concepts within the all-natural food category, targeting both domestic and international retail markets.