LISTED maker of coconut products Axelum Resources Corp. on Monday reported a 37% increase in net income for 2022 to PHP 983.52 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 PHP 7.04 billion from PHP 6.36 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 PHP 251 million, coconut milk powder by 15% to PHP 135 million, coconut water by 12% to PHP 195 million, and desiccated coconut sales by 5% to PHP 109 million.
“Collectively, these core products accounted for 87% of consolidated topline,” the company said.
Earnings before interests, taxes, depreciation, and amortization increased 31% to PHP 1.50 billion brought about by revenue growth, margin expansion, cost rationalization, and foreign exchange gain.
Gross profit reached PHP 2.11 billion, higher by 21% than the PHP 1.73 billion recorded a year earlier.
Last year, coconut prices increased to reach between PHP 10,000 and PHP 13,000 per metric ton (MT) from between PHP 9,500 and PHP 10,500 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 PHP 5.32 billion to boost its presence in agribusiness.
On Monday, Axelum shares fell by five centavos or 1.92% to close at PHP 2.55 apiece. — Sheldeen Joy Talavera