ALLIANCE SELECT Foods International, Inc. returned to profitability in the first quarter despite lower sales due to reduced costs on borrowings.
In a regulatory filing on Monday, the seafood company said it recorded an attributable net income of $26,990 in January to March, a reversal of the $7,158 attributable net loss it posted in the same period last year.
This was despite a 19% drop in net sales to $15.94 million, as the company’s 2019 top line included sales from its US subsidiary Spence & Co. Ltd. The subsidiary was sold in October.
The bottom line was cushioned by the 51% decline in finance costs, which went down due to lower average loan balance for working capital and lower borrowing rates.
“The first quarter’s steady performance shows our strengthened manpower complement and increased production efficiencies in (the first quarter) — two of the main drivers that impacted last year’s performance,” Alliance Select Chief Executive Officer Raymond K.H. See said in a statement.
“The improvements made in these key areas helped cushion against COVID-19 (coronavirus disease 2019)-related disruptions in the first quarter,” he added.
As the pandemic continues, Alliance Select said it remains optimistic it can weather the challenges as its financial position has become healthier with loan borrowings reduced by $4.5 million.
“While we do anticipate that COVID-19-related disruptions will continue to impact the group in the near term, now that the company is in a strong financial position, and as long as we continue to improve efficiencies in production and maintain resilient operations, (Alliance Select) should be on track for sustainable profitability, and that will become more evident through our results over time,” Mr. See said.
Alliance Select is a General Santos City-born manufacturer that distributes tuna and other seafood products worldwide. It operates in the Philippines, New Zealand and Thailand.
Shares in Alliance Select at the stock exchange increased four centavos or 6.35% to 67 centavos each on Monday. — Denise A. Valdez