ALLIANCE SELECT Foods International, Inc. posted a $132,059 net loss attributable to the equity holders of the parent company in the second quarter as its net sales declined.
Raymond K.H. See, Alliance Select chief executive officer, said the company’s business operations posted quarter-on-quarter improvement amid the pandemic, adding that it aims to continue the implementation of new marketing initiatives.
“We aim to continuously implement new marketing initiatives for topline growth alongside our cost-saving measures. We are also committed in exploring opportunities to further expand our domestic and international businesses,” he said in a regulatory filing on Tuesday.
Alliance Select’s net loss for the April-to-June period is an improvement over the $240,235 losses it incurred in the same quarter last year.
Alliance Select’s net sales for the quarter fell 39.4% to $11.38 million compared with $18.79 million in 2020. Its cost of goods sold also dropped 40.5% to $10.41 million.
For the first half, Alliance Select posted a $653,065 attributable net loss, an expansion of the $213,245 losses suffered a year earlier.
Net sales during the six-month period declined 42.6% to $19.95 million from $34.73 million a year ago. Cost of goods sold also dropped 42.6% to $18.17 million.
“Lower sales volume was largely due to weak export demand and high freight costs amid the prolonged coronavirus disease 2019 (COVID-19) pandemic. Thus, the company continues to implement cost-saving measures with selling and general administrative expenses down 17% year on year to $2.3 million in first half of 2021,” Alliance Select said.
“Likewise, initiatives to pay down high-interest bearing liabilities resulted in a 42% decline in interest expense to $313,006 from $540,743 in the first half of 2020,” it added.
Alliance Select said its gross profit during the period reached $1.8 million, with a higher gross profit margin of 8.9% from 8.8% in the same period last year.
On Tuesday, shares of Alliance Select at the local bourse dropped 2.99% or two centavos to finish at 65 centavos each. — Revin Mikhael D. Ochave
