Axelum allots up to P600 million for expansion

MANILA, Philippines — Axelum Resources Corp., the newly listed manufacturer and exporter of world-class premium coconut products, has programmed

a capital spending of up to P600 million for 2020 to further strengthen its production and broaden geographic reach. 

The company expects to end the year on a strong note, its president and chief operating officer Henry Raperoga said.

It posted a net income of P609 million in the nine months to September, almost double the P364.8 million reported a year ago. 

“At this rate, we are on track to meet or even surpass our own profit expectations,” he said.

The company intends to continuously invest on pioneering technology and cutting-edge equipment to optimize manufacturing output. 

It also plans to penetrate new markets or expand within existing territories by setting up regional distribution hubs and appointing reputable foreign distribution partners, Raperoga said.

“We have yet to maximize our presence in the global scale. As such, we are looking to aggressively widen our footprint particularly in the US West Coast,

Eastern Europe and Asia,” he said.

Axelum is finalizing the renewal of its coconut water supply contract with its anchor client.  This will include additional product variants which will translate to higher annual committed volumes of 25 to 27 million liters from 20 to 22 million liters. 

The company recently completed the extension of its spray-drying line that will double its production capacity for coconut milk powder from 2,400 metric tons to 4,800 MT yearly. 

“This will allow the company to capitalize on the healthy demand for coconut milk power, which is known for its extensive commercial applications,” Axelum said.

“As early as now, we believe that our well-defined objectives and strategies will put us in a strong position to grow our bottomline by at least double-digit next year,” said Axelum chairman Romeo Chan.

Axelum is engaged in preliminary discussions with certain parties for possible acquisitions. 

“We undertook a structured assessment process to carefully determine potential targets prior to approaching them. Should a deal be consummated, hopefully by next year, this will ensure that the transaction will be both income and operationally accretive to Axelum,” Chan said.