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Alliance Tuna Sees Strong Growth Despite Crisis

Canned fish exporter Alliance Tuna International Inc. expects its net income to rise by 25 percent this year to about $4 million, as its robust shipment of processed tuna continues to defy the global economic slump.

After posting an increase of 42 percent in first quarter net sales which fueled a 27-percent year-on-year growth in net profits, performance in the second quarter looked even “better,” Alliance Tuna president Jonathan Dee said in an interview with the Inquirer.

“We’re conservative now because of what’s happening to the rest of the world. But even then, our sales numbers show otherwise,” Dee said.

As such, he said the company is on track with its net profit guidance of $4 million for this year, on the back of $65 million in projected revenues. The second and third quarters are seasonally the company’s strongest periods.

“We were surprised we’ve grown this much in the first quarter. We were expecting only 25-30 percent [sales growth]. But don’t forget we have new capacity in Indonesia, so this will account for higher growth this year and more so next year,” Dee said.

Last year, Alliance Tuna organized a joint venture together with P.T. Wailan Pratama and invested in P.T. International Alliance Food Indonesia to acquire the assets of a tuna cannery located in Bitung, in the island of North Sulawesi. A complete renovation was undertaken to upgrade its capacity to 60 metric tons (MT) a day.

The investment allows Alliance Tuna access to rich Indonesian marine resources and expands its operating capacity by 50 percent to 200 MT per day.

In November, it also diversified by investing in Prime Foods NZ Ltd., New Zealand’s second largest processor of smoked salmon with a local market share of 35 percent.

Within the next five years, Alliance Tuna aspires to evolve into a regional food company with a “decidedly Filipino DNA.” The company is on the lookout for opportunities in regional seafood companies with high margins and high value products.