AXELIM Resources Corp. expects stronger growth for its coconut products this year as it forecasts robust global demand based on the country’s export performance for most of last year.
“We are seeing increasing requirements for coconuts owing to stronger preferences for nutritiously-laden food labels by a thriving health-conscious population. Last year, Axelum catered to a larger customer base and managed to outpace industry growth to accelerate global market leadership,” Axelum President and Chief Operating Officer Henry J. Raperoga said in a media release on Monday.
The manufacturer and exporter of coconut products cited a surge in coconut sales abroad to boost Philippine exports last year.
From January to November 2021, it said coconut exports were up 54% to $1.74 billion from $1.13 billion. It added that the top commodities were coconut oil and desiccated coconut with a growth of 54% and 49%, respectively.
“Based on third-party estimates, the global coconut products market is projected to reach $31.1 billion by 2026, with a compound annual growth rate (CAGR) of 14% from 2018. Aside from traditional categories, market drivers include the fast-rising coconut water and coconut milk powder segments,” the company said.
“Coconut water is a popular and healthier alternative to sugary and caffeinated drinks while coconut milk powder is an extensively-used universal food ingredient particularly for much-sought all-natural diets,” it added.
For 2022, Axelum said it would expand its nut processing and storage capabilities to improve the yield of its core products. It is also scheduling planned rollouts of multiple food products to the American market by the second half of the year.
From January to September last year, the company’s net income rose 51.1% to P578.7 million from P383.1 million in 2020.
In the third quarter alone, its net income increased 44.5% to P260.3 million from P180.2 million in the same quarter in 2020.
At the stock exchange on Monday, Axelum shares were unchanged at P2.88 each. — Luisa Maria Jacinta C. Jocson
