Press Release | Axelum Resources Corp. | May 13, 2021
Axelum outperforms pre-pandemic levels; posts record topline, gross
profit and pretax income for 2021
Axelum Resources Corp. (PSE: AXLM), the country’s leading fully-integrated manufacturer, exporter and retailer of globally in-demand consumer food essentials, primarily best-in-class premium coconut products, has disclosed its financial and operating results for full year 2021.
Axelum generated sales of ₱6.36 billion, up 23% from ₱5.17 billion, primarily driven by higher volumes and average selling prices across core product segments. For white meat, desiccated coconut volume increased by 15% while sweetened coconut and coconut milk powder volumes grew in parallel by 7%. Coconut water production remained at full-swing with delivered volume growth at 14%, eclipsing its previous high in 2020. Collectively, these core product segments accounted for 86% of consolidated topline.
Gross profit rose 34% to ₱1.74 billion from ₱1.30 billion, with gross margin expanding to 27% from 25%, despite prolonged shipping challenges and elevated input costs. EBITDA climbed 37% to ₱1.15 billion from ₱837.41 million, resulting to a record-level pretax income of ₱896.04 million, up 56% from ₱573.65 million. Excluding benefits of prior tax incentives for its coconut water segment, net income still managed to grow by 36% to ₱715.33 million from ₱526.41 million.
In terms of fiscal standing, Axelum is anchored by a solid balance sheet with a healthy cash position of ₱1.16 billion and a total debt-to-equity ratio of 0.10x as of December 31, 2021.
“We are seeing improvements in the overall business environment with global economic re-openings driving robust market demand and export activity. For this year, we are confident of sustaining our growth momentum with the easing of restrictions alongside remastered contingencies to respond to abrupt disruptions. At the same time, we continue to closely monitor the international shipping situation, domestic inflation and other various headwinds to better cushion its impact,” stated Mr. Henry J. Raperoga, President and Chief Operating Officer of Axelum Resources Corp.
Based on recent external data, Axelum grew market share for desiccated coconut, coconut milk powder and coconut water in the United States, its largest export destination. This reaffirms Axelum’s global market leadership and status as the preferred supplier of premium coconut products to renowned mainstream consumer brands.
Recently, Axelum was granted fresh tax benefits by the Board of Investments as a qualified entity under the Corporate Income Tax and Incentives Reform Act (CREATE), for organic/non-organic plant-based infused coconut drinks/juices and agglomerated coconut milk powder and other plant-based infused coconut milk powder products.
For 2021, Axelum expanded its top-tier customer base by servicing increasing orders of major clients and penetrating unserved export markets. In addition, Axelum unveiled new high-margin variants including pressed coconut water and organic coconut milk powder to complement its wide array of product offerings. To meet rising global demand, Axelum future-proofed manufacturing operations by strengthening nut processing, production and warehousing capabilities.
Previously, Axelum announced plans to unlock its massive potential in the business-to-consumer (B2C) space by capitalizing on synergies with its proven business-to-business (B2B) model. Part of this initiative is to broaden local distribution presence outside of Luzon and further accelerate the growth of its e-commerce platforms, which registered a 29% sales uptick in Amazon USA, with homegrown brand Fiesta Tropicale consistently ranking among the Top 3 bestsellers in the coconut flakes category. In the Philippines, combined average monthly sales from Axelum’s online stores jumped fourteen-fold since debuting in leading e-marketplaces Shopee and Lazada last April 2021.
For 2022, Axelum is incubating multiple all-natural shelf-stable products targeted for the American retail segment, with new product launches planned by the second half. Programmed spending is set at approximately ₱300-₱500 million to fund incremental capacity upgrades, construction of additional storage centers and other working capital requirements. Lastly, Axelum intends to pursue strategic growth opportunities including value-accretive acquisitions or joint ventures.