Filipino Seafood Producer Swings Back into Profitability12 August 2013
PHILIPPINES - Good global pricing and a healthy fish supply has helped Filipino seafood producer Alliance Select Foods International swing back into profitability.
The company reported to the Philippine Stock Exchange that it had generated a net profit of $984,025 in the second quarter of 2013, a turnaround from the loss of $450,938 in the same period last year, reports BusinessInquirer.
This shored up the company’s attributable six-month bottomline to $420,991 compared to a net loss of $515,998 a year ago.
Revenues in the second quarter rose by 29 per cent to $25.2 million which the company attributed to an across-the-board increase in contribution from all of its local and foreign subsidiaries.
Sales for the first six months of the year also grew by about 27 per cent, reaching $44.9 million from a year ago as its canned tuna division benefited from improved fish prices and deliveries.
With ongoing investments in backward integration into fishing, the company said it was on track in sourcing part of its own fish supply, ensuring supply and price stability.
The second quarter is usually a weak season for smoked salmon but Alliance said it had bucked this worldwide industry phenomenon, noting that all of its salmon subsidiaries were able to boost their revenues over the same period last year.
“With peak sales and profit season expected in the latter part of the year, we project the division to continue contributing a robust share to the company’s sales and profit growth. Better procurement policies and marketing strategies meant that gross profit margin increased at rates higher than growth in sales,” the company reported.
TheFishSite News Desk