Alliance Select Foods International Inc. slipped deeper into the red in the first quarter after revenues plunged more than half, dragged by prolonged plant shutdowns, weak demand, and mounting operating costs.

The listed tuna processor said Thursday it posted an after-tax net loss of $2.6 million for the quarter, while consolidated net revenues fell 54.5 percent year-on-year to $8.93 million.

The company blamed the sharp decline on the extended January shutdown of its plant to complete facility improvements, weakness in its loins and co-packing business, and the deferment of some shipments to the second quarter.

Alliance Select also cited elevated plant operating costs, the sale of higher-cost inventory carried over from the previous quarter, and higher interest expenses as factors that weighed on results. 

Lower general and administrative expenses, along with reduced freight and transportation costs, only partly cushioned the impact.

“Our first quarter results reflect the impact of operational and cost-related challenges during the period,” said Jeoffrey P. Yulo, president and chief executive officer of Alliance Select Foods International Inc.

“We are implementing measures to improve efficiency and cost management, and will continue to monitor developments closely as we work toward stabilizing performance,” he added.

The company, which is present in 20 countries, said it expects gradual operational improvement in the coming quarters as the initiatives take effect, subject to market conditions.