Swift Foods to sell assets to pay debts

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Publish time: 6th June, 2012      Source: www.cnchemicals.com
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June 6, 2012

   

   

Swift Foods to sell assets to pay debts

   

   

   

Philippine poultry integrator and feed manufacturer Swift Foods Inc. intends to sell its remaining operating branch and other properties within the next 12 months in its effort to reduce its debt.

   

   

Only the Palawan branch remains as the only company operated facility. It produces quality Swift Sariwanok chicken.

   


Swift said its primary concern is to pay off obligations through the sale of assets. Aside from this, the company also intends to significantly whittle down the number of its employees when the remaining branch is sold.

   


Last March, Swift raised around PHP500 million from the sale of three parcels of land on Sheridan St. in Mandaluyong City to DMCI Project Developers Inc. The properties, which had a total area of 11,116 square meters, were sold at PHP45,000 (US$1,047) per square meter.

   


In the first quarter this year, Swift trimmed its net loss to PHP7.59 million (US$175,588.77) from PHP36.27 million (US$838,861.02) a year earlier even as sales fell to PHP18.57 million (US$429,491.29).

   


The decline of revenues was attributed to the closure of its Luzon operation, except for the Palawan branch which remains operational.

   


Expenses, however, went down to PHP8.2 million (US$189,641.69) from PHP15.84 million (US$366,328.44) due to retrenchment of Luzon employees.

   


As of end-March 2012, the company''s assets stood at PHP1.027 billion (US$23.75 million).

   


Swift is primarily organized into two business divisions: agribusiness (poultry and feeds) and meat (meat processing and sales and distribution) divisions. Its agribusiness division produces and sells poultry products: live and dressed/ processed chicken.

   


Dressed chickens branded as Swift Sariwanok are sold either whole, cutup into parts and/or customized and marinated according to customers'' requirements.

   


The company''s poultry production involves four processes: breeding, hatching, broiler growing operations and dressing/processing operations.