Manila, The Philippines-based tuna company Alliance Select Foods International (ASFII) has sold its 80 percent stake in its farmed salmon subsidiary Akaroa Salmon New Zealand.
ASFII said in a filing to the Philippine Stock Exchange on 22 November that it sold its stake for NZD 7.5 million (USD 5.2 million, EUR 4.6 million). Akaroa’s main business areas include salmon farming, smoking, and processing. The Philippine firm said its divestment from the New Zealand company is intended to support its long-term focus on the Philippine market and improve its balance sheet.
“We remain optimistic about the future of ASFII and will continue to invest in our business. We are confident that this latest development will allow us to streamline our operations and improve profitability,” ASFII CEO Raymond K.H. See said.
ASFII processes tuna and exports to more than 30 countries in the world. Beside canned tuna, the company also supplies smoked and raw salmon, fishmeal, and fish oil products.
ASFII’s consolidated net revenues between January and September tumbled 40.4 percent year-on-year to USD 31 million (EUR 27.6 million). The company attributed its lower sales to weak export demand and high shipping costs caused by the COVID-19 pandemic.
Its consolidated net loss in the first nine months of 2021 was USD 70,000 (EUR 62,000), down from USD 600,000 (EUR 534,000) a year earlier. ASFII also narrowed its consolidated net loss to USD 130,000 (EUR 116,000) in Q3 2021, compared to a net loss of USD 350,000 (EUR 312,000) in Q3 2020, as the company applied cost-optimization measures to lower the prices of its goods and reduce its selling and administrative expenses.
“We are looking forward to a more-stable environment as economies across the globe recover from the impact of the COVID-19 pandemic,” See said. “We’ve made several adjustments in our business, including streamlining of operations and improving our cost structures, which should allow for better growth coming into 2022.”
Photo courtesy of Alliance Select Foods International
