LISTED maker of coconut products Axelum Resources Corp. on Monday reported a 37% increase in net income for 2022 to P983.52 million brought about by higher sales.
“Sustained global market demand, improved shipping conditions and the strength of the dollar catapulted us to historic levels for 2022,” said Axelum President and Chief Operating Officer Henry J. Raperoga in a statement.
“Looking ahead, we are determined to build on this momentum,” he said, despite the extended effects of “geopolitical armed conflicts overseas and untamed inflation.”
In its financial report, Axelum recorded an 11% growth in sales to P7.04 billion from P6.36 billion, driven by higher volumes and increased selling prices of its core product segments.
The report also stated that sales of sweetened coconuts increased by 30% to P251 million, coconut milk powder by 15% to P135 million, coconut water by 12% to P195 million, and desiccated coconut sales by 5% to P109 million.
“Collectively, these core products accounted for 87% of consolidated topline,” the company said.
Earnings before interests, taxes, depreciation, and amortization increased 31% to P1.50 billion brought about by revenue growth, margin expansion, cost rationalization, and foreign exchange gain.
Gross profit reached P2.11 billion, higher by 21% than the P1.73 billion recorded a year earlier.
Last year, coconut prices increased to reach between P10,000 and P13,000 per metric ton (MT) from between P9,500 and P10,500 per MT in 2021.
According to the company, it plans to launch “new prime-branded offerings to meet increasing requirements for plant-based food substitutes” due to the demand for vegan and nondairy choices.
“This forms part of Axelum’s strategy to unlock its massive retail potential in the long term by leveraging on its proven manufacturing and export model,” the company said.
In February, Metro Pacific Agro Ventures, Inc., a subsidiary of Metro Pacific Investments Corp., bought a nearly 35% stake in Axelum valued at P5.32 billion to boost its presence in agribusiness.
On Monday, Axelum shares fell by five centavos or 1.92% to close at P2.55 apiece. — Sheldeen Joy Talavera
