Metro Pacific has a dairy joint venture with Israel's LR Group.Manila Times | 22 April 2024
Metro Pacific eyeing more agri investments
By Brix Lelis
METRO Pacific Investments Corp. (MPIC) is looking to expand its agriculture business via other forays, its top executive said last week.
"We're looking at several [investments] already... One is related to coconuts," MPIC Chairman Manuel Pangilinan told reporters.
He did not disclose further details regarding the firm's plans beyond saying they were looking to acquire a significant stake from another company.
The group also intends to increase its dairy capacity and invest in a 3,000-hectare property in Mindoro to "plant corn for cows" and for other purposes.
"We're running out of milk, so we're looking at investing in other dairy farms," Pangilinan said, adding that they were looking to invest in "at least two more [farms]."
MPIC, through wholly owned subsidiary Metro Pacific Agro Ventures Inc., in December sealed a P5.32-billion deal to acquire a 34.76-percent stake in coconut product exporter Axelum Resources Corp.
"We've known the company for quite a bit of time, and we were looking at it a number of years ago. It was last year that we managed to make a successful investment," Pangilinan said.
"They (Axelum) have good management," he added.
Asked whether MPIC was planning to increase its stake in Axelum, Pangilinan said they were "happy" but also "prepared" to assist the Romeo Chan-led company should it require additional funding for expansion.
Axelum, which caters to multinational consumer brands in over 25 markets, saw a core net loss of P158 million in 2023, mainly attributed to a pandemic-induced shipping crisis.
Notwithstanding last year's results, the MPIC chairman expressed optimism that Axelum would swing back to profitability this year and possibly achieve double-digit growth.
Axelum last week extended a long-standing relationship with Nasdaq-listed The Vita Coco Co. Inc. (Vita Coco) with the signing of a new multiyear deal estimated to be worth P20 billion.
Axelum shares last Friday rose 7.58 percent to P2.13 each.
