AXELUM Resources Corp. recorded a 44.5% increase in its net income for the third quarter to P260.27 million as a result of higher net sales.

The listed coconut product manufacturer and exporter said in a stock exchange disclosure on Monday that its net sales during the July-September period increased 23.4% to P1.69 billion from P1.37 billion in the same period last year.

Axelum’s cost of sales for the quarter also increased 32.5% to P1.21 billion compared to P916.22 million.

For the nine-month period, the company’s net income rose 51% to P578.69 million versus P383.10 million in 2020.

Net sales improved 28% to P4.79 billion on the back of double-digit volume growth across its core product segments.

“Desiccated coconut volume increased 20% while coconut water continues to deliver robust volume growth at 18%. Sweetened coconut and coconut milk powder volumes grew 21% and 12%, respectively. In total, these product segments accounted for 86% of topline,” Axelum said.

The company’s cost of sales for the period also increased 25.7% to P3.52 billion compared with P2.80 billion in 2020.

Henry J. Raperoga, Axelum president and chief operating officer, said the company’s nine-month period earnings for 2021 already outpaced its full-year 2020 earnings.

“Based on this trajectory, we expect 2021 topline to exceed pre-pandemic levels and profit to be similar or above 2019 record income in spite of significant headwinds such as the global shipping shortage and without the tax holidays availed up to January 2021,” Mr. Raperoga said.

Meanwhile, Axelum said its nut opening plant had been processing 21% more coconuts per day to meet growing product demand.

The company expects to complete the construction of additional warehouses by early next year to increase storage capacity amid growing demand.

“Axelum’s major export markets comprised of the United States, Europe, Australia and Asia, which collectively constitute around 90% of total sales, have gradually reopened to stimulate economic activity across various industries including the food manufacturing, food service and retail sectors,” the company said.

Further, the company said its online sales from Amazon USA as of September 2021 have already surpassed total online sales posted in 2020.

It also disclosed that its combined average monthly sales from local e-marketplaces Shopee and Lazada increased four-fold since listing in April.

Axelum also estimated that the full impact of recently granted tax incentives for its products will be realized by 2022.

To recall, the company was granted tax holidays for its agglomerated coconut milk powder and other plant-based infused coconut milk powder products and its organic and non-organic plant-based infused coconut drinks/juices.

“Meanwhile, Axelum is in the process of completing the remaining requirements to finalize its application as a pre-approved entity with the Philippine Economic Zone Authority. For the fourth quarter, Axelum is aiming to capitalize on the historical uptick in consumer spending during the Christmas season both locally and overseas to boost its growth momentum,” the company said.

On Monday, shares of Axelum at the stock exchange dropped 0.36% or one centavo to finish at P2.78 apiece. — Revin Mikhael D. Ochave