Seafood firm Alliance sees profits doubling in 2011
MANILA, Philippines—Seafood processing firm Alliance Select Foods International Inc. sees net profits this year doubling to $3.2 million from a year ago on higher export earnings from tuna and salmon products.
Massachusetts-based salmon smoking and curing firm Spence & Co. Ltd., which will be 100-percent owned by Alliance by August, is seen accounting for 20 percent of the company’s net profit in 2012, company president and chief executive officer Jonathan Dee said in an investors’ briefing on Tuesday.
Sales this year are expected to reach $78 million from $48.3 million in 2010.
The processing plant in General Santos in Mindanao is seen accounting for 58 percent of sales while the tuna factory in Indonesia is expected to contribute 17 percent.
In terms of net income, General Santos is also expected to bring in the biggest share of 65 percent while Indonesia is seen to contribute 23 percent. The burgeoning salmon business is seen contributing 13 percent of the bottom line this year.
For the future, Dee said Alliance would like to “keep moving up the value chain” and look at more products to introduce to the overseas market.
Premium salmon processor Spence is Alliance’s third smoked salmon venture, which is seen helping the Filipino firm make inroads into the lucrative US seafood market. Its new factory Big Glory Bay will also supply food service products for US distribution.
Alliance’s capitalization is expected to increase to $31.6 million from $22. 8 million. To partly finance the acquisition of Spence, Alliance is selling P272 million worth of new shares to existing shareholders.
