Axelum Resources Corp. Reports a Sharp Turnaround of P106 Million in Profit in Q12024

Axelum Resources Corp. (AXLM), the country's leading fully integrated manufacturer and exporter of premium coconut goods, announced its financial and operating results for the first quarter of 2024.

Axelum achieved sales of P1.6 billion during the period, up 16% over the same period the previous year, owing to double-digit volume growth in core product segments such as desiccated coconut, coconut water, and sweetened coconut. Gross profit climbed by 60% from the first quarter of 2023 to P392 million, owing to an increase in the contribution of high-margin products. EBITDA increased by P196 million from P5 million year on year as higher gross profit flowed through EBITDA and net income, which ended at P106 million.

“The results are within expectations of us resuming our growth trajectory this year. We are already seeing positive indicators of gradual market recovery despite the broad impacts of geopolitical tensions overseas, global supply chain disruptions and the prevailing El Niño season,” stated Mr. Henry J. Raperoga, President and Chief Operating Officer of Axelum Resources Corp.
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Axelum's manufacturing capacity has been completely allocated for the remainder of the year as a result of a strong orderbook in both the white meat and coconut water segments. Furthermore, Axelum recently signed a multi-year renewal arrangement with Vita Coco, one of the world's largest coconut water companies, to capitalize on expanding mainstream demand for this popular coconut drink. Locally, Axelum's retail operations continue to gain traction, with online sales increasing by 42% and existing product relaunches strengthening market presence.

Moving forward, Axelum intends to capitalize on this momentum by launching additional product offerings aimed at the emerging global health and wellness megatrend this year. Furthermore, Axelum intends to expand into untapped markets by improving its customer lead generation capabilities.

“Historically, we start to accelerate our business in the second quarter in time for the summer peak in the United States. Overall, we are confident that our redefined strategies will enable us to continue seizing value-accretive opportunities in the long-term,” added Mr. Raperoga.