Higher sales to propel Alaska Milk to be a mid-cap firm
CHERYL M. ARCIBAL, GMANews.TV
07/02/2009 | 05:43 PM
MANILA, Philippines - Listed Alaska Milk Corp. is seeking to join companies with middle capitalization by aiming for higher sales in the medium term, president and chief executive Wilfred Steven Uytengsu Jr. told GMANews.TV.
Alaska, which is presently considered a small cap company, is eyeing to double annual sales from P10 billion to P20 billion "soon."
"It is our vision and aspiration to become a mid-cap company soon," he said.
A company will have to ramp up its capital spending to support higher sales target, an analyst said.
“Revenues and capitalization go hand in hand. To support its extra production for its higher sales, a company will have to spend more," said Astro del Castillo, managing director at First Grade Holdings.
Small cap companies generally have capitalization of less than $300 million, while a mid-cap company ranges from $300 million to $700 million. Large cap companies, on the other hand, are those with over $700 million.
Uytengsu said the company continues to enjoy steady sales, with a topline target of a 15-percent growth for this year from last year's P9.97 billion.
"We are cautiously optimistic. The impact on the Philippines of the global recession is not as acute as it is originally feared," he said.
Allotted spending for this year is about P250 million.
In 2008, the company reported that its earning slipped by 56 percent to P291 million on higher costs.
Alaska shares closed 2.27 percent higher at P4.50 on Thursday.GMANews.TV
Alaska, which is presently considered a small cap company, is eyeing to double annual sales from P10 billion to P20 billion "soon."
"It is our vision and aspiration to become a mid-cap company soon," he said.
A company will have to ramp up its capital spending to support higher sales target, an analyst said.
“Revenues and capitalization go hand in hand. To support its extra production for its higher sales, a company will have to spend more," said Astro del Castillo, managing director at First Grade Holdings.
Small cap companies generally have capitalization of less than $300 million, while a mid-cap company ranges from $300 million to $700 million. Large cap companies, on the other hand, are those with over $700 million.
Uytengsu said the company continues to enjoy steady sales, with a topline target of a 15-percent growth for this year from last year's P9.97 billion.
"We are cautiously optimistic. The impact on the Philippines of the global recession is not as acute as it is originally feared," he said.
Allotted spending for this year is about P250 million.
In 2008, the company reported that its earning slipped by 56 percent to P291 million on higher costs.
Alaska shares closed 2.27 percent higher at P4.50 on Thursday.GMANews.TV
