Costs hurt AllianceThis article was originally published in Foodnews
ALLIANCE Select Foods, the Philippines-based canned tuna producer, saw its net income reduced by half in the opening six months of 2011 due to lower revenues and increased costs. Adam Sharpe writes: The company told the Philippine Stock Exchange that its earnings declined to USD445 000 from USD916 000 in the same period a year earlier, representing a drop of 51%. “The company continued to operate under a very challenging environment during the period as tuna raw material became scarce due to inclement weather conditions,” Alliance Select Foods said. Consolidated revenues dropped to USD20.5 million from USD22.6 million in the same period last year due to a 29% drop in sales volume owing to the erratic supply of fish. Selling and administrative expenses increased 17% to USD2.0 million.n “While the gross profit of USD2.95 million for this year was about the same as last year at USD2.97 million, the increase in operating expenses and finance costs this year over last year caused the drop of this year’s net income,” it said.