Integrated coconut product manufacturer and exporter Axelum Resources Corp. is counting on the growth of exports of Philippine coconut products and a global wave of health and wellness trends to carry its company forward as it embarks on its initial public offering that could raise as much as P7.7 billion.
“The timing is perfect. We should seize the moment and go public,” Axelum chair Romeo Chan said in a statement, adding that the country’s coconut exports were likely to keep growing in the foreseeable future.
“Over the past 10 years, exports by the Philippine coconut industry have grown by some 10 percent yearly,” he said.
Chan noted that while traditional coconut products, such as copra and crude coconut oil grew by some 11 percent yearly, nontraditional products—which accounted for the bulk of the firm’s sales—grew by 25 percent yearly.
These product lines include coconut water, coconut milk powder and coconut cream, among others. In particular, the company is bullish on its two largest products: desiccated coconut and coconut water.
Citing a recent study by the University of Asia and the Pacific, Axelum president Henry Raperoga said that over the next five years, the annual growth rate in desiccated coconut sector was expected to be in the high single-digits and the growth rate in coconut water was expected to be in the mid- to high-teens.
“Axelum’s other product lines are likewise in sectors expected to achieve double digit growth rates over the next few years,” he said, adding that the high growth rates are driven by global trends toward healthier diet and lifestyle.
“By their nature, coconuts are dairy-free and gluten-free,” he said. “Given the farming practices in Northern Mindanao, the coconuts we process are likewise GMO-free and a growing proportion of them organic.”
The company said the growth in coconut products were also driven by new applications of the coconut.
“Before coconuts were used as cooking ingredients or converted into cooking oil,” Raperoga said. “Today, coconuts are used to produce juices, coffee creamer, sweeteners, cocktail mixes, dairy replacement products, and others.”