Strong sales boost Axelum earnings in Q1

MANILA, Philippines — Higher international and local sales pushed the earnings of Axelum Resources Corp. by 94 percent to P266.65 million from January to March.

The listed integrated manufacturer and exporter of premium coconut products raked in revenues of P2.33 billion, up by seven percent from P2.18 billion a year ago, due to higher volume and average selling prices for its key product segments.

Axelum said that sales of its white meat rose by 16 percent in North America, 53 percent in Australia and more than doubled in Asia in the first quarter. This was mainly due to the acquisition of new customer accounts and a larger orderbook.

Gross profit increased by 15 percent to P570 million, while gross margins grew to 24 percent amid contributions from its high-value products.

Earnings before interest, taxes, depreciation and amortization rose by 59 percent to P367 million due to better margins and higher foreign exchange rates.

Local sales went up by two percent on the back of recent product launches, which gained traction across its various retail and online formats nationwide.

The company said that it would prioritize the development of new products to accelerate its consumer segments throughout the year, while also implementing cost cutting measures to integrate inventory, streamline processes and optimize resource use.

Axelum said that its balance sheet would provide a buffer to absorb potential external shocks and maintain its position for further growth initiatives.

The company added that cash and cash equivalents stood at P3.4 billion as of end-March.

“We feel the broader consequences of the Middle East conflict particularly its disruptive effects on the pricing fundamentals for commodities and ocean freight,” Axelum president and CEO Henry Raperoga said.

“Given sustained demand, we shall employ a more tactical approach to capital programming to seize value-accretive opportunities and withstand prolonged uncertainty,” he added.