Axelum Resources Corp., the country’s leading fully-integrated manufacturer and exporter of coconut products, returned to profitability in the first half with a net income of P208 million from a loss of P126 million in the same period last year.
Axelum said in a disclosure to the stock exchange Monday it posted first-half revenues of P3.2 billion, up 14 percent from the same period last year, driven by the robust volume growth of its white meat business including desiccated coconut, coconut milk powder and sweetened coconut.
Gross profit rose 50 percent year-on-year to P735 million with gross margin translating into a 23-percent increase despite elevated input costs and lower average selling prices.
“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,” said Axelum president and chief operating officer Henry Raperoga.
Net income in the second quarter amounted to P101.7 million, a turnaround from the P56.7-million net loss posted in the same period a year ago as sales totaled P1.64 billion.
Axelum saw double-digit sales growth across major product categories this quarter despite lower selling prices.
Desiccated coconut sales grew by 36 percent, coconut milk powder by 34 percent and sweetened coconut sales grew by 12 percent. Other products such as coconut milk in cans and toasted coconut grew by about 60 percent from last year.
Sales in the European market surged 76 percent, primarily due to higher volume orders and new customers.
Axelum’s local business also grew double-digit following the relaunch of products, intensified promotional campaigns and strong performance of its online selling platforms.
“For the second half, we are aiming to outperform the first six months as we cater to the summer peak in the United States and year-end customer stocking requirements,” Raperoga.
Axelum commissioned a new filling machine that is expected to boost production capabilities for coconut water by at least 30 percent annually to serve rapidly-growing demand for the popular mainstream beverage.
Axelum recently signed a multi-year renewal contract with Vita Coco, the world’s largest coconut water brand, to secure one of its major revenue streams in the long-term.
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