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Friday, March 29, 2024

Axelum eyes 8% growth in coconut sales

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Axelum Resources Corp., the country’s leading coconut manufacturer and exporter, expects to sustain its growth over the next few years amid increasing demand for coconut products overseas and growing domestic consumption.

Axelum president Henry Raperoga said in a news briefing the global demand for coconut products, particularly for coconut water, had been increasing amid the growing trend for a healthier lifestyle.

He said the company was expecting to sell 27 million liters of coconut water in 2019, or 8 percent higher than 25 million liters it sold in 2018.

Coconut water accounts for 20 percent to 30 percent of the company revenues while desiccated coconuts which the company exports to major countries such as the United States, Europe, Eastern Europe, Asia, the Middle East, Australia and New Zealand, contribute 30 percent to 40 percent.

Raperoga, citing a study by the University of Asia & the Pacific, said that over the next five years the annual growth rate in desiccated coconut sector was expected to be in the high single-digits while the growth rate in coconut water was expected to be in mid- to high-teens.

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“Axelum’s other product lines are likewise in sectors expected to achieve double-digit growth rates over the next five years,” he said.

Raperoga said the growth in demand for coconut products was also being driven by new applications of coconut.  “Before, coconuts were mainly used for cooking ingredients or converted into cooking oil. Today, coconuts are used to produce juices, coffee creamer, sweeteners, cocktail mixes dairy replacement products and others,” Raperoga said.

He said that given the expected increase in demand for coconut products, Axelum would raise P7.7 billion through an initial public offering to pursue expansion plans.

The company plans to sell up to 1.33 billion shares at P6.81 per share.  The offer period will be from Sept. 24 to 30 while the PSE listing was set on Oct. 7.

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