MANILA, Philippines — Alaska Milk Corp. expects its sales to grow double digit this year as demand for milk products continue to pick up, its top official said.
“We hope to have double-digit sales growth this year,” Alaska chairman Wilfred Uytengsu Jr. told reporters yesterday.
He said the company expects demand and consumption of milk products to grow following the increase in income or spending power of consumers.
“As disposable income rises, food is generally a beneficiary of that growth, so we would expect to be part of that,” he said.
He said the first package of the government’s tax reform program has contributed to improving consumption.
Under the Tax Reform for Acceleration and Inclusion law which took effect earlier this year, the government reduced personal income tax rates and imposed higher taxes on fuel, cars, tobacco and sugar beverages to offset foregone revenues.
With prices of consumer goods on the rise, Uytengsu said the company is keeping its prices in check in order to grow sales.
While prices of Alaska’s milk products have remained steady, he said the company is keeping a close watch on the cost of skim milk powder, as well as the exchange rate.
Alaska imports 100 percent of its skim milk powder, which accounts for almost 50 percent of its total cost.
The company has a production facility in San Pedro, Laguna which recently completed its modernization program.
Uytengsu said the company spent almost P1 billion two years ago to increase the plant’s capacity and improve safety.
While the company ships products based on orders from traders to countries with a small Filipino population, he said bulk of the sales still comes from the domestic market.