Alliance Tuna Philippines reports 82% surge in net income last year

Alliance Tuna International reported an 82 percent surge in net income last year to $2 million or P102.8 million from the $ 1.1 million in 2005 due to strong growth in sales. The firm disclosed to the Philippine Stock Exchange (PSE) yesterday that net sales rose 43 percent to $ 31.1 million or P1.6 billion in 2006 from $ 21.8 million in the previous year.This was due to the upsurge of orders from all the major markets, orders from new markets that it established last year, and an expansion of Alliance Tuna's product lines. Gross profit margins were posted at around 12 percent, reflecting strong margins in a commoditized global industry. Gross profit amounted to $ 3.7 milion or P189.3 million in 2006."Improved cost controls and the entry into new markets that paid better prices helped in improving the core profitability of the company," Alliance Tuna said. A strict cost control regime instituted in 2006 paid rich dividends and led to higher net income with net profit margin reaching 6.4 percent in 2006 from the 5.1 percent margin attained in 2005. Alliance Tuna president Jonathan Dee said "2006 was a great year for us. When we started operations in 2004, we had set a three-year goal of going public by 2007. We achieved that with much to spare."

He added that the company's stellar performance in 2006 was the result of its market expansion program and its continuous efforts to improve operations at the factory floor. "We are now selling to more than 40 countries worldwide, double the number of countries we sold to when we started two years ago," Dee said noting that they have been very pro active in seeking new markets which had resulted in strong sales growth. He said the firm has taken part in exhibitions in Asia, Europe, the Middle East and Eastern Europe which has helped the firm expand its marketing reach."This larger client base has enabled us to beat the targets we set for ourselves at the start of 2006. Also, our cost control methods have resulted in higher margins and increased profitability as compared to 2005 and we are confident that we will be able to repeat the performance this year," Dee said. He said proceeds from the firm's IPO last November have already had an immediate and direct positive impact on its operations and profitability. Alliance Tuna has been able to use the proceeds for only two months in 2006 and the full year impact of the additional funds should be fully presented in 2007.