Axelum Resources Corp. posted profits of P775.6 million last year, up 113 percent from P364.8 million in 2018.
Revenues, however, dropped 10 percent to P5.3 billion from P5.9 billion, which the company attributed to “global decline in vegetable oil prices that heavily discounted average selling rates combined with the strong finish of the Philippine peso.”
“The year 2019 was a transformational period for Axelum as it transitioned from a private homegrown company into a publicly-listed entity. We also achieved a record level in terms of profitability despite encountering various headwinds brought about by an overall challenging environment. We were faced with global price volatilities of vegetable-based oil, rising input costs and a stronger peso currency, amongst others. Looking ahead, we are determined to sustain this growth trajectory in 2020,” said Henry Raperoga, Axelum president.
Raperoga said gross margin improved to 29 percent from 23 percent as a result of “on-going efforts intended to leverage on operational efficiencies, streamline processes and optimize production costs.”
“Operating expenses were also relatively maintained at P297 million in 2019. Net income margin stood at 15 percent compared to 6 percent in 2018,” he added. Axelum is allocating P600 million as capital expenditures this year to expand local and overseas distribution channels, upgrade production equipment and develop new products.
