Axelum reports income increAse, but coconut price decline cuts revenues

COCONUT products manufacturer Axelum Resources Corp. said its net income grew 28 percent during the nine months of the year ending September to P609 million from P475.7 million last year.

“We are pleased with the results despite encountering weaker global vegetable oil prices and a stronger peso in 2019. Interestingly, while production volumes were relatively maintained, our margins noticeably improved as we deliberately shifted focus on higher margin products. Altogether, we are convinced of carrying this momentum into the fourth quarter, where we have historically benefited from the holiday consumption uptick,” Axelum Chairman Romeo I. Chan said. Revenues fell 11 percent to P3.9 billion from P4.4 billion last year, due to the steep drop in average selling prices and appreciation of the peso compared to 2018, the company said.

Axelum ramped up its research and development activities to create new product variants such as pressed coconut water and organic coconut milk powder, with the latter recently securing firm orders for 170 metric tons, aggregating to an estimated export value of $1.3 million, to be used as a key ingredient for skin-care supplements.

This move will allow the company to extend and offer a wider range of products that will cater to the emerging global health and wellness trend, it said.

Axelum said it improved gross profit and net income margins to 31 percent and 16 percent, from the previous 25 percent and 11 percent, respectively.

In the July-September quarter, net income grew 32 percent to P205.5 million from P155.1 million last year.

“Armed with definitive strategies and the necessary resources, we now have our sights set in 2020. Nonetheless, we are determined and confident to finish this year on a strong note,” Chan said.

VG Cabuag