AXELUM Resources Corp. reported that its first-quarter net income grew 25% to P181.93 million from P145.6 million despite logistics issues due to the pandemic.
“We continue to service increasing requirements of our customers despite major shipping issues, particularly irregular port calls, delayed container turnover, limited cargo space and international port congestion,” President and Chief Operating Officer Henry J. Raperoga said in a statement on Monday.
“Nonetheless, we remain confident in maintaining our growth trajectory this year anchored on rising global demand for our products combined with our proven ability to operate under these challenging conditions,” he added.
Sales increased by 14% to P1.67 billion from P1.47 billion, mainly driven by steady volumes and higher average selling prices of its core product segments.
The company is a fully integrated manufacturer, exporter and retailer of premium coconut products.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 25% to P303.48 million due to cost containment efforts.
Meanwhile, gross profit rose by 16% to P432.16 million while gross margin expanded to 25.9% from 25.3%, attributed to various production efficiencies and process improvements.
To address the shipping situation, Axelum said it contracted strategically located third-party storage centers to immediately support its “aggressive” manufacturing pipeline.
The company is expanding its main warehousing facility to increase storage capacity by 30%, which is set to be completed by 2023.
“In general, Axelum ships on a freight-on-board basis and is actively coordinating with major shipping partners for pre-booked space availability and negotiated rates for its customers,” it added.
In 2021, net income increased by 36% to P715.33 million from P526.41 million in 2020.
“We are seeing improvements in the overall business environment with global economic reopenings 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,” Mr. Raperoga said.
“At the same time, we continue to closely monitor the international shipping situation, domestic inflation and other various headwinds to better cushion its impact,” he added.
Based on recent external data, Axelum said it grew market share for desiccated coconut, coconut milk powder and coconut water in the United States, its largest export destination.
At the stock exchange on Monday, Axelum shares were up by 2.05% or five centavos to close at P2.49 apiece. — Luisa Maria Jacinta C. Jocson