Axelum expects to end 2020 on “high note”
The country’s leading coconut product manufacturer, Axelum Resources Corp., expects to end the year on a “high note” despite challenges arising from the coronavirus (COVID-19) pandemic.
Axelum’s performance has improved and returned to year-on-year revenue growth, Henry Raperoga, Axelum president and chief operating officer, disclosed to the Philippine Stock Exchange on Thursday.
“We are confident of sustaining this uptrend through the end of the year and a sharp rebound in 2021,” he said.
Axelum has started operating a new state-of-the-art pressed coconut water processing plant to produce a high-demand product variant for American coconut juice brand Vita Coco, an anchor client.
Pressed coconut water is seen to offer a nuttier and sweeter taste than traditional coconut water without additional sugar content.
The company expects to increase its coconut water production volumes with the commercial operations of its pressed coconut water line. Moreover, Axelum said it remained on track to meet its commitment of at least 25 million liters of coconut water to Vita Coco this year.
The disclosure said Axelum was also receiving increased orders of both organic and fair trade coconut products, generating higher selling prices and earning fair trade premiums that help coconut farmers enrolled in the fair trade program.
The forthcoming Christmas holiday season, which normally leads to a boost in both the domestic and export business, is also seen to boost business later this year.
On the other hand, Axelum is finalizing the completion of its new spray-drying facility, which will double the potential output of its highly profitable organic coconut milk powder segment and support growth in 2021 and beyond.
The company also aims to broaden its domestic retail presence, particularly in the Visayas and Mindanao regions, through identified reputable local distributors. Offshore, Axelum is in discussions with new distribution partners for both existing and unserved markets.
Meanwhile, the company is constantly evaluating various local and foreign prospects within the food manufacturing sector for possible future acquisitions.
Earlier, Axelum obtained board approval to reallocate a portion of its unused initial public offering (IPO) proceeds up to P1 billion for debt retirement. The company subsequently prepaid the majority of its long-term obligations to save on interest charges and solidify its fiscal position.
“We have successfully adapted to this new normal environment. Notwithstanding all these prolonged uncertainties, we are staying focused and determined to attain our growth aspirations,” Raperoga said.