EARNINGS of Alliance Select Foods, International, Inc. fell 98.5% in the second quarter of 2019, due to lower prices for raw fish and challenges in the salmon market.
In a regulatory filing, the listed seafood company reported a net income attributable to the parent of $14,427 in the April to June period, lower than $986,095 in the same period a year ago.
This came amid a 4% decline in net sales to $23.498 million for the quarter.
In the first half, Alliance Select’s attributable profit lost 99.7% to $7,269, while net sales went down 10% to $43.094 million.
The company explained that sales from the tuna segment alone dropped by 8% due to the lower market price of raw fish. It was further weighed down by manpower challenges.
“We continue to play the long game. In the first half, we succeeded in fortifying our operations, mainly progressing and expanding our worker programs and ensuring that our factory continues to operate at optimal capacity,” Alliance Select President Raymond K.H. See said in a statement.
Sales of salmon also fell 14% due to issues in securing a particular salmon specie requirement.
At the same time, selling and administrative expenses went down 3% due to lower sales from the salmon business.
Moving forward, Alliance Select remains optimistic about further investing in the country. The company said it looks to complete its $2-million investment in facility and machinery upgrades within the year, which should improve products and efficiencies for the firm.
Incorporated in 2003, Alliance Select’s operations are located in General Santos City. It has subsidiaries in Indonesia, New Zealand, and the United States, while exporting its canned tuna products to Europe, North America, Asia, Africa and South America, and the Middle East.
Shares in Alliance Select were unchanged at 69 centavos each at the stock exchange on Tuesday. — Arra B. Francia
