Axelum inks $1.3 supply deal with int’l skin care maker

Coconut product manufacturer Axelum Resources Corp. debut on the Philippine Stock Exchange on Monday, October 7, 2019. The company has signed a $1.3-million supply contract for organic coconut milk powder with an international skin care manufacturer, but officials declined to name the buyer as the deal is still going through the final stages. In photo, left to right, are FMIC EVP Dan Camacho, Axelum chairman Romeo Chan, and Axelum president Henry Raperoga. Jon Viktor Cabuenas, GMA News

Coconut product manufacturer Axelum Resources Corp. has signed a $1.3-million contract to supply organic coconut milk powder to an international skin care manufacturer.

Axelum president Henry Raperoga said the initial order for the contract is 170 metric tons.

“This contract is for another new application from the versatile coconut. This line is among the high-margin products that we are pursuing. We can actually command a premium price for this product,” he told reporters in Taguig City.

Raperoga declined to identify the company involved as details are still being finalized, but noted that the agreement is valued at $1.3 to $1.5 million.

The announcements were made on the sidelines of the listing of the company’s P4-billion initial public offering (IPO).

Shares of the company opened at P5.29 per share, up 5.8% from the IPO price of P5.00 per share.

“It’s very encouraging to see that investors remain optimistic and gave their vote of confidence in Axelum,” said Axelum chairman Romeo Chan.

Axelum is a major exporter of desiccated coconut, coconut milk powder, coconut milk/cream, reduced-fat coconut, sweetened/toasted/roasted desiccated coconut, coconut cooking oil, and other coconut products.

The company’s products are sold to domestic and international food and beverage companies, confectioneries, bakeries, private label supermarkets and grocery store chains, food service industries, coconut coffee creamer manufacturers, cosmetics, and diet prepared food market.

Aside from Vita Coco, its notable customers include global brands such as The Hershey Co., Nestle, Unilever, Ferrero, General Mills, Campbell’s, Quaker, Kellogg’s, Cadbury Schweppes, and ConAgra Foods.

Its products are widely distributed in markets such as the United States, Canada, Australia, New Zealand, Eastern Europe, Europe, Middle East, Japan, and several countries in Asia.

The company’s main production facility is located in Medina, Misamis Oriental. It owns two distribution facilities in the United States and Australia.

“We’re looking at acquiring more distribution channels,” said Chan, citing Europe, the United States, and Vietnam.

“Vietnam is still in an initial exploratory stage. We have to be careful. We’re not familiar with the regulations there,” he said. —VDS, GMA News