Alaska Milk Corporation reported that its profits soared 316 percent in the first nine months of the year to P993 million from P239 million in the same period in 2008 as sales and margins continued to improve in the third quarter.

With costs of major raw and packaging materials down from their peak levels in 2008, operating margin for the nine-month period went up to 15.0 percent from 5.5 percent in the previous year.

The firm disclosed to the Philippine Stock Exchange that net income continued to surge in the third quarter bolstered by higher sales volume of core milk products and improved margins.

Net income in the third quarter of 2009 jumped 638 percent to P370 million from P50 million in the same period last year.

Strong volume growth sustained revenues in the third quarter this year to P2.66 billion, up 11.3 percent from P2.39 billion in the same period of 2008 on the back of higher sales volume of liquid canned milk and powdered milk products.

This brought revenues for the first nine months of the year to P8 billion, 13 percent higher than year-ago revenues of P7.08 billion. Sustained brand-building initiatives through advertising and promotional activities translated into improved shelf off-take.

Combined sales volume of the Company’s portfolio of liquid canned milk products posted double-digit growth rates alongside the milk market’s expansion.

Alaska’s more competitive pricing strategy for selected milk brands continue to drive demand especially in the economy market.