Press Release | Axelum Resources Corp. | August 11, 2023
Axelum Reports Q2 2023 Financial 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 the second quarter of 2023.
For the second quarter, Axelum generated sales of Pl .46 billion, up 7% from Pl .36 billion in the first quarter of 2023. Sales of coconut water increased by 43 %, driven by robust volume growth of 40%, while sweetened coconut rose by 7%, despite lower average selling prices, which was offset by 10% volume growth. Desiccated coconut volume remained stab le and poised to accelerate in the second half, backed by a healthy orderbook. Other product segments particularly coconut milk/cream, crude coconut oil and reduced fat coconut, likewise saw volume uptick of 42%, 16% and 15%, respectively. Gross profit posted at P245 .81 million, up 1 % from P244.57 million in the preceding quarter. EBITDA came in at Pl 9.94 million, while consolidated net loss was trimmed to P56. 70 million, compared to P69.26 million in the previous quarter.
For the first semester, Axelumregistered topline of P2. 82 billion, translating to a gross profit of P490.38 million. EBITDA stood at P25.29 million, while consolidated net loss settled at Pl25.97 million. Excluding foreign exchange adjustments, which includes valuations of dollar-denominated assets, core net loss was at P93.81 million.
“The sequential improvement in volume across most of our product segments is a clear indicator of initial recovery. We are optimistic that the pandemic-induced inventory glut, which temporarily softened demand in the first quarter is nearing its tail-end. At this point, we are looking to build on 1his momentum as we aim for a substantial turnaround in the second half of the year,” stated Mr. Herny J. Raperoga, President and Chief Operating Officer of Axelum Resources Corp.
Moving forward, Axelum will focus on rationalizing its cost structure to enhance margins and stay competitive amidst challenging market conditions. Axelum has implemented various enterprise-wide cost management programs including streamlining key areas of operations to capitalize on efficiency and scale. In addition, Axelum continues to ramp up its consumer branded segment, with the planned rollout of fresh and exciting products in the ensuing months, primarily targeted for domestic and overseas retail consumption. Recently ,Axelum relaunched its Fiesta CoconutMilkPowder, to offer the local market a world-class consumer product at affordable price points. This new variant features a contemporary design with the same healthy twist, packaged in assorted retail pouches.
“We will continue to invest in new product development to anchor the expansion of our consumer branded business, which we foresee to significantly contribute to our growth in the long-term,” added Mr. Raperoga.