LISTED coconut food product manufacturer and exporter Axelum Resources Corp. is banking on strong demand to drive the company’s growth this year.
The global coconut products industry is expected to see strong demand, upward pricing, and supply tightness this year based on independent publications, Axelum said in a regulatory filing on Tuesday.
This puts Axelum in a position to capitalize on the prevailing conditions amid supply volatility due to climate variability, it said.
“We have charted a clear path forward to expand our institutional business, while realizing the massive untapped potential of our consumer segment both domestically and overseas,” Axelum Resources Corp. President and Chief Operating Officer Henry J. Raperoga said.
“Last year, we were focused on redefining plans, establishing new customer touchpoints, building strategic capabilities, and strengthening our overall distribution network. For 2025, we will concentrate resources on strategy execution and optimizing efficiencies across the business to maximize value generation,” he added.
Axelum said it is on track to record all-time high shipped volumes for 2024, without providing specific figures.
“Following a sharp turnaround in 2024, Axelum is foreseeing record delivered volumes for most of its core product segments, primarily driven by rapidly-growing mainstream demand for plant-based eating, expanding commercial uses, innovative non-food applications, and other emerging market trends,” the company said.
To date, Axelum has fully commissioned its new filling line to increase coconut water production by over 30% annually.
It also installed new equipment to boost manufacturing yields and finished the renovation of existing warehouses to increase storage capacity for finished goods.
Last year, the company signed a multi-year renewal agreement with coconut water brand Vita Coco. It also extended its sourcing areas to ensure raw material supply for its daily operational requirements.
“We have identified unique opportunities that will help propel us into a new era of growth in the long term,” Mr. Raperoga said.
“As a company, we are positive that the current global macroeconomic backdrop will remain conducive and supportive of this ambition,” he added.
For the first nine months, Axelum returned to profitability with a P339 million net income from the P428 million net loss in the same period last year.
January to September sales increased by 20% to P5.1 billion on higher volume in segments such as coconut powder, desiccated coconut, and coconut water.
Axelum shares fell by 0.95% or two centavos to P2.08 apiece on Tuesday. — Revin Mikhael D. Ochave
