November 16, 2006
Philippines' Alaska Milk doubled profits for the third quarter
Philippine milk company Alaska Milk Corporation posted a net income of P104.23 million (US$2.08 million) for the third quarter of 2006, 124-percent higher than the P46.47 million (US$927,000) it made in the same period last year despite weaker consumer demand for milk products.
According to the Business Mirror, net revenues for the quarter also grew by 15 percent to US$28.3 million from US$24.5 million in 2005, despite the market's contraction and intensified competition.
In its quarterly report filed with the Securities and Exchange Corporation (SEC), the company said the growth in net sales was largely driven by the strong performance of its liquid canned milk and powdered milk businesses.
The SEC report also pointed out higher sales volume of high-value UHT (ultra-high pasteurization) products as well as the incremental sales generated from the distributorship agreement with American cereal maker Kellogg's helped lift revenues during the quarter.
Volume growth was also due to its aggressive selling efforts and marketing initiatives during the peak Christmas season.
Cost of sales and operating expenses for the last quarter, meanwhile, rose by 8 percent to US$25.75 million from US$23.55 million a year ago, because of higher sales volume.
Following its good run from the third quarter, Alaska's net sales for the first nine months grew 14 percent to US$83.05 million US$72.66 million in the same period last year. Alaska spent US$5 million (roughly P250 million) this year to expand its manufacturing facility in San Pedro, Laguna which is set for completion next year.
Alaska has three principal lines of business, namely, liquid canned milk, powdered filled milk and UHT ready-to-drink milk. Last year, the company cornered a market share of 41 percent for evaporated filled milk product; 49 percent for the condensed milk and 21 percent for the powdered milk segment.
