MANILA, Philippines - Alaska Milk Corp. said Wednesday its earnings last year fell 39% as lower expenses failed to offset higher raw material costs.
In a disclosure to the Philippine Stock Exchange, Alaska said its 2011 net income was only P1.104 billion, against a record net income of P1.816 billion in 2010.
It said operating income was down 32% year-on-year at P1.247 billion, largely due to higher cost of production inputs.
Cost of sales grew 12% to P8.471 billion.
Operating expenses, on the other hand, went down 8% to P2.084 billion in the absence of a one-time impairment loss and on lower administrative expenses.
This year, Alaska said demand for dairy products will remain strong, but further easing in prices is expected due to abundant supply.
It said skimmed milk powder price this month dropped at an average of 0.5% to $3,300 per metric ton overseas.