June 2, 2004

Philippine's Alaska Milk Corp Reports Higher First Quarter Earnings

Alaska Milk Corp., a Philippine dairy products maker, on Wednesday posted higher first quarter earnings, boosted by stronger sales and higher selling prices.

The company said its net profit in the three months to March rose 4.8% on year to PHP153.6 million from PHP146.5 million, while revenue grew 35% on year to PHP1.32 billion from PHP976.4 million.

"The strong revenue growth was primarily driven by brisk sales across all product lines, as well as the impact of selling price increases in July 2003 and March 2004," said Alaska in its financial report.

The last price adjustment was an 8% increase to cover rising raw material costs.

Cost of sales and operating expenses for the period rose 43% on year to PHP1.13 billion from PHP789.8 million, boosted largely by the higher average price of skimmed milk powder imports, a vital raw material, and foreign exchange costs.