International seafood supplier Alliance Select Foods International Inc. reported a net loss for the first quarter of the year as its main revenue drivers posted declines during the period.
It incurred a net loss of $100,000 during the three-month period, in contrast to the profit it was able to gain last year at $495,000.
The company’s consolidated net revenues hit $19.6 million, down 17 percent from $23.7 million in the same period last year.
In terms of expenses, its finance costs increased by 68 percent to $552,000 from $329,000 a year ago due to the higher amount borrowed for working capital and an increase in interest rates, while its selling and administrative expenses remained relatively flat compared to year-ago levels.
The losses may be attributed to the stale performance of its tuna and salmon business segments—considered
as the company’s main growth drivers—due to lower prices of raw materials and the continuous challenge in sourcing particular species, respectively.
Alliance Select’s CEO Raymond See said in a regulatory filing that the company expected the result of its first quarter report “as we focus on delivering sustainable cash flows and long-term growth for the business.”
“With strong momentum of our core businesses and exciting growth prospects of new products in the pipeline, Alliance Select is targeting to ramp up performance later in the year,” he added.
The firm is banking on its recent investment of almost $2-million in facilities and research to contribute to its bottom line growth.