TUNA and salmon canner Alliance Select Foods International Inc. has set aside some $2.3 million in capital spending this year, mainly for the acquisition of cost-saving machines as part of efforts to further streamline operational expenses.
“We would like to further streamline our operations and we are looking at our redundancies and the unnecessary steps that we take, how we use our materials, and we keep on working on our technology,” said James Bertulfo, business development executive of the company.
That is why Alliance Select’s capex for the year was mainly allocated for the acquisition of machines that could provide the cannery more advanced technology that would translate into savings, he said.
The company incurred a net loss of $8 million in 2015 as revenues fell 23 percent to $68 million from the previous year.
But in the first three months of the year, it realized net earnings of $519,000, far better than the $18,065 posted during the same period last year, on improved optimization efforts, lower cost of materials, and cost-cutting initiatives.
“The horizon is positive as we were able to book net income during the first quarter. Thus, the cost-cutting initiatives that we are doing now would really reverse the financial performance of the company eventually,” said Flordeliza Po, deputy group comptroller of Alliance.
Po stressed that the company has to invest in advanced technology as its counterparts not only in the Philippines but also abroad are able to offer substantial discounts to their respective suppliers.
“Probably it was also because of better conditions, especially with regard to the supply of fish. They probably have more ample supply. But now, we are confident that our suppliers would be able to give us our fish requirement,” Po said.
Meanwhile, Bertulfo said they plan to expand their clientele by entering the US, Middle East and Japan markets for their tuna products.
“Right now, we are present in Europe and other Southeast Asian countries. Although we have a small market in the US, it is still very, very small. So, we would like to tap these large markets for our products,” Bertulfo said.
But he added that this would still depend on tuna supply.
“In view of the tuna ban in Indonesia, which is one of our main sources of tuna, we are now looking at other sources. But we are confident that with our investments in technology in place, we are going to [be able to]increase our raw materials,” Bertulfo said.