Alliance Select Foods International Inc. (ASFII) narrowed its net loss after tax in 2025 to $1.8 million from $3 million a year earlier, but warned that conditions remain challenging heading into 2026.

“ASFII was significantly affected by a less favorable portfolio mix and operational headwinds. We are actively addressing these issues to improve performance and restore profitability,” President and CEO Jeoffrey P. Yulo said on Tuesday.

Yulo noted that 2026 has already shaped up to be difficult due to “increased cost of fish and transport, paired with uneven demand.”

Despite the narrower loss, cost pressures continued to weigh on margins.

Gross profit fell to $5.9 million from $8.04 million, dragged by higher raw material prices as well as rising labor, overhead, and interest costs, particularly toward year-end.

Revenues grew 7.9 percent to $78.1 million from $72.5 million, marking a third straight year of growth, supported by expansion into new export markets and new product launches.

However, gains were partly offset by weaker co-packing operations and lower sales of frozen tuna loins amid tougher competition from China and Ecuador.

Some segments provided support, with canned and pouch products performing well, while the local market posted strong growth and showed potential to become a larger revenue contributor.

ASFII is engaged in tuna processing and supplies products to over 20 countries.