AXELUM Resources Corp. recorded a 111% increase in its net income for the second quarter to P172.81 million due to volume growth across its core product segments.
For the first half, net income rose 57% to P318.42 million, the listed coconut product manufacturer and exporter said in a stock exchange disclosure on Friday.
Henry J. Raperoga, Axelum president and chief operating officer, said the company’s financial results show a “compelling growth story” amid the challenging times.
“We are receiving increasing order quantities from our blue-chip customers, and at the same time attracting new clients from various geographies, as we continue to roll out innovative and high margin products. This puts us in a unique position to accelerate our growth momentum moving forward,” Mr. Raperoga said.
Axelum’s topline for the six-month period improved 30% to P3.1 billion from P2.39 billion as its core product segments recorded volume growth.
“In terms of volumes, desiccated coconut grew 24%, while sweetened coconut, coconut milk powder and coconut water, increased 34%, 11% and 23%, respectively,” it said.
“For 2021, Axelum has consistently produced record monthly output for its desiccated coconut, coconut water and coconut milk powder segments, keeping on-track to exceed last year’s total volume,” it added.
Operating income rose 105% to P387.38 million from P188.65 million on the back of an enterprise-wide fixed cost discipline.
The company said gross margin “significantly improved” to 26% from 21%, which it attributed to a mix-shift strategy and operational efficiencies, despite higher input and shipping costs.
“Axelum continuous to ramp up production of its premium-priced high-margin product variants targeted for export markets,” it said.
During the period, net margin widened to 10% from 9% despite a normalized effective tax rate of 23% versus 6% after fully realizing special tax incentives earlier this year, it said.
Axelum said it was recently granted tax holidays for its new agglomerated spray-dryer and pressed coconut water, on pioneer producer status, and will take effect in the second half of the year.
Meanwhile, the company said it expects to continue its growth trajectory amid a strong global demand for coconut products and the recovery of its major export markets.
“At present, Axelum is incubating new products in different development phases that will cater to the rapidly-growing global plant-based food industry. These initiatives will extend its product line-up and create additional revenue streams in the coming years. As of June 2021, domestic e-commerce sales have grown by 57% and continuing to gain traction among local consumers,” the company said.
“Operationally, Axelum has boosted daily nut processing activities by 27%, following the reconfiguration of its nut opening plant, which features higher capacity while staying compliant with mandatory health and safety protocols. Moreover, Axelum is currently expanding its warehousing facilities to meet rising demand for its world-class products,” it added.
On Friday, shares of Axelum at the stock exchange rose 0.36% or one centavo to end at P2.79 apiece. — Revin Mikhael D. Ochave
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