February 14, 2008

Philippines' Alaska Milk reports 65 percent leap in '07 revenue

Philippines' Alaska Milk announces an impressive 65-percent rise in its unaudited 2007 profits to PHP663 million (US$16 million) from PHP402 million (US$9.8 million) in 2006.

Alaska said revenues surged 53 percent to PHP9 billion (US$219 million) from P5.9 billion (US$144 million), brought about by solid performance of its core milk products plus revenues from acquired Nestl¨¦ liquid canned milk brands.

The company's net income in the fourth quarter of 2007 was PHP97 million (US$2.4 million), or 3.4 percent of the net sales against PHP143 million (US$3.4 million) in 2006.

Income from operations stood at PHP143 million, or five percent of net sales, down 69 percent from PHP208 million (US$5.1 million), or 11.8 percent of net sales, in the fourth quarter of 2006.

Alaska stated that higher sales volume combined with higher skimmed milk powder cost pushed cost of sales and operating expenses higher at PHP2.72 billion (US$66 million) from P1.56 billion (US$38 million) a year ago.

Major factors which buoyed the price hikes of skimmed milk powder were dry weather conditions in Australia, low buffer stocks in Europe, a depreciating US dollar, and stable demand. These factors are expected to prevail throughout 2008.