Coconut products producer Axelum Resources Corp. expects a strong recovery in 2024 after a dismal financial performance this year.
Axelum investor relations head Paul Cheah said in a recent interview the company is now seeing a pick-up in demand as new orders come in.
The United States is a major export market for Axelum coconut products, accounting for 2/3 of its total business.
Cheah said the improving demand would likely be sustained in 2024, which would enable Axelum to return to profitability.
“All stats are leading to recovery,” Cheah said.
Axleum posted net loss P428 million in the first nine months of t2023 after booking a one-time loss on inventory write-down amounting to P309.88 million.
“We were able to stop the bleeding. Minus the write off, we already made money in the third quarter of the year. Hopefully that momentum will be sustained,” Cheah said.
Cheah said Axelum expects to finally close the investment deal with Metro Pacific Investments Corp.
“Talks are moving forward. We hope to close it soon but I just don’t when,” he said.
MPIC’s wholly-owned subsidiary Metro Pacific Agro Ventures Inc. reported in February plans to acquire a 34.76-percent stake in Axelum for P5.32 billion. The deal was originally scheduled to close in August.
Negotiations were extended because of Axelum’s poor financial performance.
Axelum continues to rationalize its operational cost overhead, while actively developing new and exciting retail products under homegrown labels for both domestic and overseas markets, aligned with its strategy of expanding its consumer branded business.
