Axelum Resources Corp., an exporter of premium coconut products, said Wednesday its board approved a P500-million share buyback program to boost shareholder value.
Under the plan, it will buy P500-million common shares from the market for six months from Sept. 25, 2024 until March 24, 2025, the company said in a disclosure to the stock exchange.
The company’s board, on the management’s recommendation, may extend the buyback program by another six months.
Axelum said the amount allotted for the repurchase program may be increased from time to time, subject to availability of unrestricted retained earnings.
The buy-back program will be executed in the open market through the trading facilities of the Philippine Stock Exchange.
“The buy-back program shall be implemented in an orderly manner and should not adversely affect the company’s and its subsidiaries’ prospective and existing projects,” Axelum said.
The repurchased shares will be kept as treasury shares.
Axelum has an authorized capital stock of 5 billion shares, divided into 4.8 billion common shares and 200 million redeemable preferred shares. It also has 201.594 million treasury shares.
Axelum recently commissioned its new filling machine that is expected to boost production capabilities for coconut water by at least 30 percent annually. This will serve rapidly-growing demand for this popular mainstream beverage.
Axelum also signed in April 2024 a multi-year renewal contract with Vita Coco, the world’s largest coconut water brand, to secure one of its major revenue streams in the long-term.
The company became the first supplier to Vita Coco outside Brazil in 2009.
Axelum is the leading fully-integrated manufacturer and exporter of premium coconut products in the Philippines, catering to top-tier multinational consumer brands in over 25 markets across North America, Australia, Europe, South America, Middle East and Asia.
