LISTED AXELUM RESOURCES Corp. is expecting a sharp rebound in revenues by 2021 as it starts seeing improved performance in the second half of the year.
In a statement on Thursday, the coconut products manufacturer said it has started to climb back after posting a 47% income decline to P202.94 million in the first semester.
“Despite the numerous challenges brought about by this ongoing pandemic, we continue to see improving performance and have returned to year-on-year revenue growth,” Axelum President and Chief Operating Officer Henry J. Raperoga said in the statement.
“We are confident of sustaining this uptrend through the end of the year and a sharp rebound in 2021,” he added.
In late 2019, Axelum was expecting its revenues to grow double digits by the end of 2020, driven by expansion and acquisition plans.
However, due to the coronavirus pandemic, the company’s revenues dropped 9% to P2.39 billion in the first half of 2020. It said the lockdowns and mobility restrictions implemented to combat the virus outbreak limited its access to coconut supply, resulting in some unmet demand.
But since the quarantine measures were eased, Axelum said it has commissioned a pressed coconut water processing plant and started operating its pressed coconut water line. These are seen to drive up the company’s production volume, which will help it hit at least 25 million liters of coconut water for its client Vita Coco by yearend.
The Christmas season is likewise seen to lift Axelum’s performance, as it said the holidays usually result in higher demand for both its domestic and export segments.
“We have successfully adapted to this new normal environment. Notwithstanding all these prolonged uncertainties, we are staying focused and determined to attain our growth aspirations,” Mr. Raperoga said.
For next year, Axelum expects its growth will be supported by its new spray-drying facility, which will allow it to develop new products from coconut powder. The completion of the facility will double its daily capacity to 20 metric tons of coconut milk powder.
Axelum is a homegrown company that supplies coconut products to local and international manufacturers, such as All Market, Inc. (Vita Coco), The Hershey Co., Nestlé, Unilever, Ferrero, General Mills, Campbell’s, Quaker and ConAgra Foods.
Shares in the company picked up one centavo or 0.39% to close at P2.55 each on Thursday. — Denise A. Valdez