AXELUM RESOURCES Corp. said it is on track to hit or even exceed its profit target by the end of 2019 as it posted a 28% growth in net income in the nine-month period ending September.

In a statement Wednesday, the newly-listed coconut products manufacturer said its net income in the January to September period stood at P609 million, up from last year’s P476 million, positioning it for an increase in whole-year financials.

“Our financial results for the first nine months of 2019 have grown nearly two-fold compared to our full year performance in 2018. At this rate, we are on track to meet or even surpass our own profit expectations,” Axelum President and Chief Operating Officer Henry J. Raperoga said in the statement.

The company is allocating between P500 million to P600 million for capital expenditures in 2020, which it will use to “further strengthen its production capabilities and at the same time broaden geographic reach.”

It said it will be acquiring new equipment to improve its operational efficiency and increase its manufacturing output. It is also looking to enter new markets next year by opening distribution hubs in regional locations and tapping distribution partners overseas.

“We have yet to maximize our presence in the global scale. As such, we are looking to aggressively widen our footprint particularly in the United States West Coast, Eastern Europe and Asia,” Mr. Raperoga said.

After raising P4 billion from selling 700 million primary common shares and 100 million shares when it held its initial public offering in October, Axelum said it initially allocated P800 million from its proceeds to settle short-term loans.

Heading into 2020, the company said it expects its coconut water and coconut milk powder to drive the growth of its revenues. It said it is currently renewing its coconut water supply contract with an anchor client.

“As early as now, we believe that our well-defined objectives and strategies will put us in a strong position to grow our bottom line by at least double-digit next year,” Axelum Chairman and Chief Executive Officer Romeo I. Chan was quoted as saying.

Shares in Axelum climbed 14 centavos or 5.38% to P2.74 each on Wednesday. — Denise A. Valdez