Alliance Select allocates $2.3-M capex

ALLIANCE SELECT Foods International, Inc. is spending $ 2.3 million this year, largely for the acquisition of machines meant to slash operational costs and subsequently improve its profitability.

The listed tuna and salmon canner is focused on lowering its operational expenses by employing state-of-the-art equipment in processing products, its Business Development Executive James Bertulfo told reporters after its annual stockholders’ meeting in Pasig City on June 28.

“We would like to further streamline our operations and we are looking at our redundancies and unnecessary steps... and we keep on working on our technology,” Mr. Bertulfo said.

In addition, the company plans to further train its workforce, as part of efforts to improve its operating performance.

Alliance Select incurred a net loss of $6.39 million last year, as revenues dropped to $73.74 million from $ 81.26 million, amid what it described as a ”challenging environment.”

The company managed to post profits during the three months to March, with its net earnings surging to $ 513,630 from the $51,053 booked for the same period in 2015.

Alliance Select attributed its improved first-quarter financial results to optimization efforts, lower cost of materials and costcutting measures.

“The horizon is positive as we were able to book net income during the first quarter,” Flordeliza Po, the deputy group comptroller of Alliance Select, said when asked about the company’s prospects for the rest of the year.

“The cost-cutting initiatives that we are doing now would reverse the financial performance of the company, eventually,” Ms. Po added.

Alliance Select also targets to expand the contribution of local sales in the revenue pie to 30% from 20% within the year, although the bigger chunk is still coming from exports.

“Well, it’s where the opportunity... It will be a good business opportunity for the company,” Ms. Po said.

At the same time, Mr. Bertulfo noted that Alliance Select is looking to expand its client base abroad by offering its tuna products in the United States, Middle East and Japan.

“Right now, we are present in Europe and other Southeast Asian countries. Although we have a small market in the US, it was still very small, so we would like to tap these large markets,” Mr. Bertulfo said.

Such a plan, however, remains in the planning stage and exports to the prospective markets would still depend on the availability of the company’s tuna supply.

Alliance Select, formerly Alliance Tuna International, Inc., was incorporated in 2003 and began commercial operations in General Santos City in 2004, engaging in tuna processing, canning, and the export of canned tuna products to Europe and North America.

Shares in Alliance Select closed flat at 81 centavos apiece on the Philippine Stock Exchange on Monday. —