Alaska Milk Corporation reported that profits in the first half of 2010 jumped 70 to P1.06 billion from the P623 million earned in the same period last year on the back of sustained sales volume growth alongside subdued costs.

In a disclosure to the Philippine Stock Exchange, Alaska said net sales for the first half of the year hiked 9 percent to P5.83 billion from P5.35 billion in the same period in 2009 as sales volumes across the company’s core milk products continued to exhibit robust growth rates.

Sales volume of Alaska’s liquid canned milk products expanded as consumer demand for milk products accelerated at double- digit rates. In addition, intensive advertising and media support for AMC products pushed sales of liquid canned milk higher.

On the other hand, sales volume of the powdered milk business likewise sustained a healthy growth rate due to continuous brand-building activities.

Similarly, sales volume of the UHT business, ready-to-drink milk and ready-to-use products, remained brisk amidst continuing efforts to expand consumer base.

Notwithstanding the growth in sales volume, cost of sales and operating expenses declined by 2 percent in the first half of the year largely due to the significant decline in the cost of key production inputs combined with diligent cost management.

As a result, operating income for the first half of 2010 amounted to P1.31 billion, 75 percent higher than year-ago operating income of P749 million as operating margin improved to 22.4 percent from 14.0 percent in the same period last year.

The net income for the first half of 2010 is equivalent to an earnings per share (EPS) of P1.20 compared to the P0.70 EPS in the same period last year.