Alliance Select Foods cuts losses despite bad fortune of Indon subsidiary
Alliance Select Foods International Inc., a listed tuna canner and exporter, slashed its losses by more than a half to $8 million in 2015 from $17.1 million in 2014 as its revenues declined and administrative expenses increased.
In its disclosure to the stock exchange, Alliance Select Foods International said.
In its annual report released today, Alliance Select Foods International reported a 16-percent fall in revenues to $67.9 million and a nine-percent increase in expenses to $9.5 million.
Alliance Select Foods said “the revenue decline is primarily due to lower volumes sold across the group and secondarily due to lower prices for canned tuna products sold.” Tuna and fishmeal products account for some 60 percent of the company’s revenues while salmon products account for 40 percent.
The company said the sales volume of its Indonesian subsidiary plummeted by 52 percent because of poor profitability. Alliance Select Foods International said fishing costs in Indonesia went up because of prohibitive fishing regulations.
The company said salmon sales also fell because of the loss of its biggest salmon buyer, Prime Foods NZ Ltd., which ironically was a former affiliate.
Alliance Select Foods International said PFNZ accounted for more than half the revenues of Big Glory Bay Salmon & Seafood Co. Inc.
Alliance Select Foods International divested its 39-percent stake in PFNZ to focus on Glory Bay Salmon & Seafood.
The Singaporean and Filipino shareholders of Alliance Select Foods International are locked in a legal battle since last year and the company has been unable to keep a chief financial officer and chief information officer on board for more than five months. (By: Eileen A. Mencias)