LISTED coconut products maker Axelum Resources Corp. has earmarked up to P400 million in capital expenditure (capex) this year to improve its production facilities.
In a regulatory filing on Monday, the company said that its capex for the year was estimated at P350 million to P400 million, to be used for increasing capacity, modernizing equipment, and upgrading facilities.
Axelum also reported a net loss of P158 million for 2023 due to “weaker than normal performance,” reversing the P983.52 million in net income in 2022.
This was mainly due to the pandemic-induced shipping crisis, which led to increased inventory levels and reduced demand for its key products.
“The prior year saw a unique opportunity to revisit our fundamentals and strategies, as we gear up to restart our momentum in 2024,” Axelum President and Chief Operating Officer Henry J. Raperoga said.
The company reported sales of P5.7 billion during the year, due to the consistent performance of its coconut water and coconut milk/cream segments. This was lower than the P7.04 billion reported in 2022.
Its gross profit was P970 million, representing a 53.02% decline from the P2.11 billion reported a year prior.
Axelum’s selling and general administration expenses for the year were P685 million and P456 million, respectively.
“To date, we are already seeing positive macro indicators particularly tempering inflation and anticipated interest rate cuts, which are seen to fuel consumer activity in our largest export market,” Mr. Raperoga added.
On Monday, Axelum shares fell by 1.83% or four centavos to close at P2.14 apiece. — Adrian H. Halili