Press Release | Axelum Resources Corp. | May 12, 2023
Axelum Reports Q1 2023 Results
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, discloses its financial and operating results for first quarter 2023.
For the period, Axelum generated sales of ₱1.36 billion, leading to a gross profit of ₱244.6 million. Coconut water segment remains strong, posting 27% revenue growth year-on-year, supported by a robust growth outlook for the rest of 2023. Axelum experienced softer demand for desiccated coconut, as key customers slowed down production due to higher-than-usual inventory. Food manufacturers beefed up inventory when shipping costs tempered late last year, while pushing back initially scheduled orders for Q1 2023 to subsequent quarters. As a result, Axelum’s order pipeline is busy particularly for desiccated coconut in the second half of the year. Axelum believes that weaker performance in Q1 2023 is a legacy of the pandemic-induced shipping crisis that impacted global supply chains. Excluding foreign exchange adjustments, which includes valuations of dollar-denominated assets, core net loss stood at ₱39.6 million.
“COVID-19 had a profound effect on supply chains across the world, and most importantly for our industry, which led to elevated freight costs and longer shipping times. As the situation eased up towards the end of last year, we were able to supply customers their requirements as they ramped up production, which served as safety stock going forward. For Q1 2023, we saw customers temporarily pause to digest accumulated inventory. In the coming months, we expect a more normalized environment with steady orders and production output,” stated Mr. Henry J. Raperoga, President and Chief Operating Officer of Axelum Resources Corp.
To date, Axelum is preparing to launch a new line-up of exciting food and beverage products both locally and overseas, aligned with its strategy of accelerating its consumer business. Moreover, Axelum expects increased production volumes particularly for coconut water to meet higher demand during summer months in the United States. Axelum continues to invest in building strategic capabilities to boost production capacity and capitalize on modern technology.
“Our products continue to gain mainstream awareness within a growing population of consumers that advocate for plant-based nutrition, not to mention innovative non-food commercial applications across various industries. As such, we remain confident in our long-term growth outlook despite prevailing global headwinds,” added Mr. Raperoga.