Alliance Select turns around with $1.6-M profit

MANILA, Philippines - Listed tuna and salmon processor Alliance Select Foods International Inc. turned around to a profitable performance in January to September this year on record sales.

In a regulatory filing, Alliance Select said it booked a $1.625-million net income in the nine-month period, reversing the $903,876 loss a year ago.

“The turnaround was due to the record sales and high gross profits rates of the tuna division,” Alliance Select said.

Revenues almost doubled to $57.19 million from $32 million in the same period last year, allowing the firm to post $7.876 million in gross profits, up from $4.46 million a year ago.

Around 60 to 70 percent of Alliance Select’s revenues come from abroad. The group’s biggest markets include UK, France, Germany, Netherlands and the US.

“The abundance of fresh fish during the third quarter has been critical to the turn-around of the tuna division,” Alliance Select said.

The company processed 8,253 metric tons (MT) of fish in the third quarter, almost matching the 10,796 MT processed in the first half this year.

“With the peak season around the corner for the company’s salmon subsidiaries and continued availability and access to tuna raw materials, the group is projected to return to its historic high growth and profit margins,” the firm said.

Last month, Alliance Select completed the purchase of an 80-percent share in New Zealand salmon firm Akaroa Salmon NZ Ltd. for NZ$2.8 million or approximately P96.6 million.

Alliance Select said it would invest an additional NZ$126,881, equivalent to P4.38 million, as working capital in Akaroa. It is in line with its goal of becoming a significant player in the global salmon industry.

The firm started engaging in tuna processing, canning, and export of canned tuna products through its plant in Gen. Santos City in 2004.

To date, the company produces more than 200 MT of processed seafood daily, supplying hundreds of successful brand name companies across 60 countries around the world.

Alliance Select has three factories in Gen. Santos City with a production capacity of 70 MT of tuna a day. It also has a factory in Indonesia that produces 50 MT of tuna a day.

In addition, the firm has one plant each in the US and Thailand.