COCONUT product manufacturer Axelum Resources Corp. is estimating its 2019 revenues to hit about P5.5 billion and projecting its 2020 top line to grow double digits.
The newly listed firm said its growth trajectory has remained intact for 2019 and is bullish in the year ahead as it sees further growth to be driven by its expansion and acquisition plans.
“This year, because of the foreign exchange and because of the market problems, the gross revenue target will be something like maybe about P5.5 billion on a consolidated basis. Next year, we should be hitting at least P6 billion,” Axelum President and Chief Operating Officer Henry J. Raperoga said in a Dec. 18 interview with BusinessWorld.
In terms of bottomline, Mr. Raperoga said Axelum may reach around P750-800 million for 2019, putting it on-track to hit the P1 billion mark by 2020.
“We’re doing very well. The fundamentals are very strong. And then as far as what we have promised during the IPO (initial public offering), that we’re going to go for acquisitions, we are actually working (on that),” he said.
When Axelum held its IPO in October last year, it said it will use 25% of its proceeds to fund strategic acquisitions, where the timing of disbursement is from 2020 to 2022.
Mr. Raperoga said the company is already “in serious talks” with at least three local firms for prospective acquisitions and expects deals to “materialize probably in the second half.”
In terms of expansion, in Axelum’s 2020 pipeline is getting its new spray facility fully operational in the first half of the year. This is expected to boost its production capacity and increase revenues.
“We’re on stream, in other words. And we’re looking very positive about what’s going to happen for (2020). We’re looking at double-digit performance, bottomline wise. So we’re very confident,” Mr. Raperoga said.
Axelum reported its net income grew 28% to P609 million for the nine months ending September and committed P500-600 million for capital expenditures this year.
Shares in the firm at the stock exchange increased 27 centavos or 10.27% to P2.90 each on Friday. — Denise A. Valdez