A shadow fell over Alliance Select Foods International, Inc. as 2025 concluded, revealing a net loss despite rising sales. The seafood company, a key supplier to over twenty nations, battled a surge in costs that ultimately outweighed its revenue gains.
The final tally showed a net loss after tax of $1.8 million, a slight improvement from the $3 million loss recorded in 2024, but a loss nonetheless. This downturn wasn’t due to a lack of demand; instead, the company found itself squeezed by escalating expenses across the board.
Raw materials became more expensive, labor costs climbed, and overheads increased, all contributing to a significant decline in gross profit – falling from $8.04 million to $5.9 million year-over-year. Adding to the pressure, rising interest expenses further eroded the company’s margins.
The fourth quarter proved particularly difficult, with interest costs reaching their peak and intensifying the financial strain. This timing coincided with a shift in the company’s product mix, impacting overall profitability.
Despite these challenges, Alliance Select Foods demonstrated resilience with a 7.9% increase in consolidated net revenues, reaching $78.1 million – marking a third consecutive year of growth. This success was fueled by expansion into new international markets and the introduction of innovative products.
However, gains in export sales were partially tempered by a decline in co-packing services and reduced frozen loin volumes. Fiercer competition from producers in China and Ecuador directly impacted these areas of the business.
“We were significantly affected by a less favorable portfolio mix and operational headwinds,” stated Jeoffrey P. Yulo, President and Chief Executive Officer. “We are actively addressing these issues to improve performance and restore profitability.”
Bright spots emerged in other segments, particularly in canned and pouch products, which experienced robust growth. The company’s domestic business also showed positive momentum, offering a glimmer of hope amidst the broader challenges.
Looking ahead to 2026, the outlook remains uncertain. Yulo cautioned that increased costs for fish and transportation, coupled with fluctuating demand, will continue to pose significant hurdles.
The market reacted to the news, with Alliance Select Foods shares experiencing a 1.22% decrease, closing at P0.405 apiece on Tuesday. The company now faces the critical task of navigating these economic headwinds and charting a course back to profitability.
