Coconut manufacturer Axelum Resources Corp. has earmarked P350 million in capital expenditures (capex) for 2021 to modernize its equipment, expand its capacity, and develop new products, as it seeks to “resume its growth trajectory this year.”
Henry J. Raperoga, the company’s president, said the amount will help drive capacity upgrades and improve its existing plants. A portion of the capital will also be used for research and development initiatives.
“We are entering 2021 with a renewed sense of courage and optimism anchored on our collective efforts and various learnings from last year, which strengthened our character and resolve,” he said in a statement attached to a disclosure.
Raperoga added that Axelum is looking at growing its market reach both locally and internationally through the appointment of distribution partners in key growth areas. He added that the group “continues to look for strategic and value-accretive targets for either an acquisition or joint-venture.”
The capital outlays program was lower by almost 50 percent from the 2020 capex target of the company. Last year, Axelum allotted P600 million for its capital program.
“Last year, we capitalized on downtime at our manufacturing facilities driven by the Covid-19 pandemic to increase capacity in existing products and introduce new products, both of which will drive substantial growth in the future,” Raperoga said.
In 2020, Axelum commenced production of pressed coconut water, a proven high-demand product of its flagship product Vita Coco. Raperoga said partly driven by demand for pressed coconut water, Axelum expects to register double-digit volume growth in its coconut water segment.
Raperoga noted that Axelum is currently “running at full capacity…signaling strong global demand” for Axelum’s coconut products.”