Homegrown seafood company Alliance Select Foods International Inc. (“ASFII” or the “Company”, PSE: FOOD) reported consolidated net revenues of USD15 million for the first half
of 2022 versus USD20 million in the comparable period last year.
Higher production efficiency has resulted in a 22% year-on-year (YoY) reduction in manufacturing costs. This partially mitigates the impact of weak export demand as freight costs
remain elevated. Gross profit went down 29% to USD1.3 million in the first half of 2022.
Excluding the contribution of former subsidiary Akaroa, which was divested in November 2021,
gross profit would have increased 21%. Selling and general administrative expenses fell 30% YoY as the Company continues to implement cost-saving measures. The reduction in debt levels also resulted in a 42% drop in interest expense to USD180 thousand.
ASFII posted a consolidated net loss of USD620 thousand during the first half of 2022, slightly higher than the USD595 thousand net loss in the same period last year.
ASFII President and CEO Jeoffrey P. Yulo said, “We are seeing sequential improvement in our
operating income amid the challenges of high shipping rates and rising inflation. In the second
quarter of 2022, net revenues have improved 40% quarter-on-quarter while gross profit increased 48%. Gross profit margin has expanded to 8.3% vs 7.9% a quarter-ago. Greater production efficiency is expected to continue on higher plant utilization rate.”
The Board of Directors of ASFII also approved the liquidation of ASFII’s indirect subsidiary in Indonesia, PT Van De Zee. The Indonesian company was organized to engage in fishing activities in Indonesia, however, the company has not been able to operate due to the long-standing moratorium in Indonesia against fishing by foreign entities.
Read More: Press Release Philippines