Alliance Select Foods cuts losses by 25% with reduced overhead

Alliance Select Foods International, Inc. said on Thursday that it had significantly reduced its consolidated net loss to $2.6 million in 2023, marking a 25% improvement from the previous year's loss of $3.5 million.

In a disclosure to the Philippine Stock Exchange, the canned tuna company said this reduction was primarily driven by a 22% decrease in manufacturing overhead due to upgraded plant machinery, enhancing efficiency and plant utilization.

The company's consolidated net revenue surged by 63% to $56.5 million, attributed to increased volume and strategic price adjustments.

Despite a slight dip in gross profit margin by 70 basis points to 8.5% due to supply chain issues in the first three quarters, Alliance Select Foods said it managed a 52% increase in gross profit for the year.

This was bolstered by favorable supply costs in the fourth quarter and lower overhead expenses.

Alliance Select Foods president and CEO Jeoffrey Yulo highlighted ongoing improvements, stating, "We will build on favorable price trends with our product mix, higher volume, and operational efficiencies."