Alliance Select to focus on Phl, NZ operations

Alliance Select Foods International Inc. is realigning its business to focus on its Philippine and New Zealand operations.

The listed food company announced last week the sale of its Massachusetts-based subsidiary, Spence & Co., to Acme Smoked Fish of Massachusetts LLC.

It also sold the assets – land and building – of PT IAFI to PT Multi Nabati Sulawesi, a subsidiary of Wilmar International Ltd.

The sale of both Spence & Co. and assets of PT International Alliance Food Indonesia is part of Alliance Select’s strategy to focus on its Philippine and New Zealand operations, said Alliance Select president and CEO Raymond

K.H. See.

“Ninety percent of our business is in the Philippines and New Zealand. Growing our operations and maintaining our profitability in these countries is our priority in the medium term. To ensure the sustainability of our results, we must consolidate our gains and make decisions that are consistent with our objectives,” See said.

The company intends to use proceeds from the sale to fund capital expenditures and significantly reduce debt.

“Alliance Select is a stronger company today and the goal is to continue this positive momentum. We have a healthier balance sheet and are ready to further invest in our future,” he said.

Alliance Select expects to continue its 2018 record high growth performance with these business realignment efforts.

See said 2018 continued the upward trajectory of the company’s financials and saw it exceed set targets.

The company posted a 35 percent increase in revenue in 2018 to $97 million, up from $72 million in 2017.

The company also grew profit by 67 percent last year, while net income before tax registered a rise of nearly seven times to $3.5 million from $562,000 in 2017.

Moving forward, See said Alliance Select plans to implement and continue several strategic initiatives and optimization measures to sustain the growth trajectory of the company.