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Ayala Q3 attributable profit dips

By Arra B. Francia, Reporter
AYALA CORP. (AC) saw its attributable profit drop by five percent in the third quarter of 2018, as the higher earnings from its property unit failed to offset the weakness of its industrial business and the absence of transaction gains from the power segment.
In a disclosure to the stock exchange on Wednesday, the country’s oldest conglomerate said it generated P7.8 billion from July to September. AC attributed the slowdown to AC Industrials and AC Energy, noting that the latter booked services income from the financial close and construction of a new power plant.
Without transaction gains, AC’s attributable profit would have grown six percent year-on-year.
On a nine-month basis, AC’s net income attributable to owners of the parent went up by three percent to P23.86 billion, from P23.24 billion in the same period a year ago. The company posted higher interest expenses at the parent level due to increased borrowing to finance its capital spending, tempering the strength of its real estate, telco, and power businesses.
Revenues meanwhile surged by 18% to P223.48 billion.
“These results reflect the value of having a well-diversified portfolio. While some businesses have more exposure to the impact of certain local and global macroeconomic and industry challenges, other businesses have been fairly insulated and are providing a positive balance to our portfolio,” AC President and Chief Operating Officer Fernando Zobel de Ayala said in a statement.
For property, Ayala Land, Inc. (ALI) grew its earnings by 17% to P20.8 billion on account of higher demand for its residential properties, complemented by its commercial leasing business. Revenues jumped 21% to P119.7 billion.
The listed property developer’s reservation sales went up by 15% to P108.4 billion. It also benefited from the opening of new malls, offices, and hotels, as commercial leasing revenues firmed up 14% to P25.3 billion.
Bank of the Philippine Islands recorded flat earnings at P17 billion, despite a 7.3% uptick in revenues to P56.9 billion. Its total assets reached P1.96 trillion as of end-September, 8.9% higher year-on-year.
Globe Telecom, Inc. grew its attributable profit by 17% to P15.16 billion, following a nine percent increase in service revenues to P103.3 billion. The company has been expanding its 4G and LTE network to accommodate the demand for content-filled products and multi-media apps. With this, the data-related business accounted for 59% of service revenues.
Meanwhile, Manila Water Company, Inc. logged a net income of P4.9 billion, a percent higher year-on-year, as revenues grew seven percent to P14.4 billion. It recorded a 3% growth in billed volume in the Metro Manila East Zone concession to 378 million cubic meters.
At the same time, the firm booked a strong performance from its Vietnam subsidiaries, with equity share in net income of associates surging 82% to P514 million.
AC Energy improved its net earnings by 39% to P2.8 billion for the period, driven by its thermal and renewable platforms.
Earnings of AC Industrials fell by 27% to P758 million, dragged by its automotive business and start-up losses from new businesses. Weak sales from the Honda and Isuzu dealership, alongside the company’s further investment into the dealerships, prompted a 67% profit decline to P157 million.
Sought for comment on AC’s performance, Philstocks Financial, Inc. Research Associate Piper Chaucer Tan said the flattish quarter is “justifiable.”
“AC is investing on its power plant… which it is counting on for future growth…. With the influx spending in Christmas season, we think that AC can deliver its earnings guidance for 2018 moving forward,” Mr. Tan said via text.
Shares in AC added 0.56% or P5 to close at P900 each on Wednesday.

Robinsons Land partners with Frabelle for Cavite projects

ROBINSONS Land Corp. (RLC) has teamed up with the Tiu-Laurel family’s Frabelle Fishing Corp. to establish a firm that can purchase and develop properties in Cavite.
In a disclosure to the stock exchange on Wednesday, the property developer said its board of directors approved the joint venture (JV) partnership with Frabelle. The JV firm will have an authorized capital stock of P1 billion.
“RLC and Frabelle, through a joint venture company, shall purchase, lease and develop real estate properties situated in Bacoor City and other areas. The project is intended to be a mixed-use development and may include residential units and commercial retail outlets,” RLC said in a disclosure.
Founded in 1966 by Francis and Bella Tiu-Laurel, the Manila-based firm specializes in catching sardines, mackerel, round scad, skipjack, frigate, and yellowfin tuna. It supplies fresh, frozen, and processed seafood products locally, as well as markets in Africa, Europe, North America, the Middle East, and Asia, according to its website.
The Frabelle Group also has businesses in cold storage operation, meat processing, and property development.
RLC said profit sharing will be split in accordance with the shareholdings of each company, with the JV firm’s board to have six directors.
The Gokongwei-led RLC has been partnering with several firms this year to further expand its mixed-use developments in the country.
In February, it sealed a partnership with Hong Kong Land International Holdings Ltd. and its subsidiary Ideal Realm Limited for the purchase of a property in Bridgetowne East, Pasig City. RLC also announced its joint venture with Shang Properties, Inc. for a mixed use development in Bonifacio Global City last November.
RLC’s net income climbed by 43% to P6.55 billion in the first nine months of 2018, after revenues grew by 31% to P21.8 billion.
Shares in RLC jumped by 2.05% or four centavos to close at P19.90 each at the stock exchange on Wednesday. — Arra B. Francia

Tasting France in a glass


By Joseph L. Garcia, Reporter
WITHIN EVERY bottle of wine is a summary of time and space in which a wine was made: from every drop of sunlight and rain, to the air and the soil from which the vines absorb life.
Late last month, a group of wine producers and exporters arrived in the Peninsula Manila for Tastin’ France, a project of Business France, that country’s national agency for supporting the development of exports and international investment. The project aims to increase the awareness of French wines in the country, as well as get a foot in for French wine players. Its Philippine stop on Oct. 29 was part of a Southeast Asian tour: right after setting up shop in Manila, the group of exporters and producers went on to Kuala Lumpur and then Singapore.
BusinessWorld talked to three of the wine makers and exporters, for three different reasons: age, location, and, well, plain old prestige.
PATRIARCHE
Wine company Patriarche has under its belt more than 200 years of history, being founded in Beaune in the 1700s. It is one of the oldest wine makers in Burgundy, itself known for its rich history and wine. Up until recently, it had been run by members of the original family until it was acquired by the Castel Group. Carlos Varela, its Asia Pacific Export Director, said that it has lasted so long because of “a spirit of innovation.”
According to him, the original owners made a decision early on to specialize in sparkling wines to rival those from Champagne. The sparkling Champagne, you see, is protected by an EU designation that prevents any sparkling wine produced outside the Champagne region to be called such. Mr. Varela had us taste the Louis Pevrier Brut Excellence, a wine with a strong, sultry smell and a taste punctuated with a note of fresh-cut grass. A Veuve de Vernay Brut, meanwhile, had a bit of a taste of almonds, with an accompanying crunch and crispness, and a very velvety mouthfeel.
Along with this, he produced a Veuve de Vernay Ice, a sparkling wine designed to be served over ice — a mark of the company’s innovative ways.
By the way, Mr. Varela notes that an excellent sparkling wine, particularly a cremant, should have a bit of creaminess, a bit of a taste of almonds, a bit of biscuit flavor (but not too much), and “fine, regular bubbles.” He said that the company balances tradition with innovation by “always trying to listen to the market, being careful with the market trends’ evolution, being careful with the customer’s evolution” as well as “trying to educate consumers to the specificity of wine making.”
CAVE DE TAIN
We then hopped on with a glass to the town of Tain -L’Hermitage, through a company called Cave de Tain.
Cave de Tain produces wines in Southeastern France, growing their vines on the Hermitage hillside where the Rhone river flows. Export Manager Jean-Benoit Kelagopian pointed out the site of their vineyards: “When you see the picture, you will know,” he said, running his finger along a photo of the Hermitage hillside, as if showing that the beautiful surroundings contribute to the wine’s taste. The high altitude of the vineyards he says, contributes to the wine’s quality: “That’s very good for the maturity.”
He had us taste a Saint-Joseph, which had a pungent, oaky aroma, and an overall smooth finish save for a crisp, knife-like edge.
According to him, the vines are grown sustainably, which does affect the wine. “In the end, your vines are in better health, and as they are in better health, they produce better fruit, and from better fruit, you make better wines.”
WINE AROUND
In 1855, The French Emperor Napoleon III ordered a classification of the wine makers from Bordeaux, and the lucky few who were included in the list continue to enjoy the privilege of being called a Grand-Cru, a mark still respected around the world.
Thibault Riviere, Associate Co-Owner of Wine Around, has the privilege of serving as a distributor of grands-crus. He had us taste a Chateau La Tour Carnet Haut Medoc, a grand-cru; quite feminine and had a scent of perfume.
Now, the thing about Bordeaux wines is, is it all marketing, or is it really the best in all the world? Mr. Riviere talks about the efficiency of the production and marketing, but says, “That’s why it’s very famous; because it’s a huge producer.” He also says, “If it’s famous, it’s also easy to drink.”
This goes against our belief that a more expensive wine would be more complex and difficult, but he argues that grands-crus from Bordeaux are much less expensive than grands-crus from Burgundy. “In terms of taste, it’s a lot of seduction,” by which he means that at the very first sip, the flavors are immediately expressed, urging the drinker to keep going.

Flat earnings for Philippine operator of 7-Eleven stores

THE local licensee of 7-Eleven convenience stores posted flat earnings for the third quarter of 2018, as investments for its online business dampened sales growth.
In a regulatory filing, Philippine Seven Corp. (PSC) said net income for the three months ending September stood at P202.16 million, compared to its P201.89-million profit in the same period a year ago.
The company attributed the flat results to expenses incurred for its online unit. Without this, PSC said income store operations climbed 31.6% for the July to September period.
“Our digital efforts have led to a more data-driven approach, incorporating incrementality and elasticity to assortment and pricing, respectively. We have spent the last quarter formulating and testing such initiatives, some of which have already entered the scaling phase,” PSC President and Chief Executive Officer Jose Victor Paterno said in a statement.
PSC expects its online initiatives to start contributing to profit growth by next year. While the firm sees potential in the online space, PSC noted that exiting this strategy would not materially affect future earnings should prospects for the sector change.
Meanwhile, system-wide sales rose by a fifth to P10.95 billion for the quarter. At the same time, same-store sales growth (SSSG) accelerated to 7.7% from 6.6% in the previous quarter, driven by more operating stores and better average sales per store.
Despite the slower quarter, PSC’s net income went up by 13% to P735.32 million on a nine-month basis, with system-wide sales at P33.12 billion, 22% higher year-on-year. SSSG also improved to 8.4%.
Stores of 7-Eleven have seen sales increase since the passage of the first package of the Tax Reform for Acceleration and Inclusion (TRAIN) law, which effectively raised the take-home pay of middle class workers. However, excise taxes on sugar-sweetened beverages have resulted in higher selling prices.
PSC ended September with 2,442 stores under its portfolio, 12.4% higher than the 2,172 it had in the same period a year ago. Of this, 1,898 are located in Luzon — with 912 in Metro Manila, 345 are in Visayas, while 199 are in Mindanao.
Shares in PSC gained 0.46% or 50 centavos to close at P107.50 each on Wednesday. — Arra B. Francia

Alaskan salmon bagoong, unexpectedly

By Rebecca S. Torres
This is one of three articles that placed second in the Doreen Gamboa Fernandez Food Writing Awards 2017.
NANAY LEONOR hails from the town of Sta. Lucia in Ilocos Sur and she worked as a seafood processor at a salmon cannery in Alaska for over 15 years together with other Ilokano kababayans, people hailing from the same Philippine province. Being an Ilokano, she is hardworking, thrifty, and determined.
Alaska is the largest state in the United States with an extensive span of maritime border and coastline. Those bodies of water are the rich source of different salmon varieties that are among Alaska’s main seafood exports as well as cod, pollock, and crab.
MEETING NANAY LEONOR
Over a decade ago, our friend Rey with his wife Emma introduced his mother Leonor to us when she came home to the Philippines for a visit. Nanay means mother in the Philippine National Language and it is often used as an honorific and term of endearment. Nanay Leonor, upon learning that I too am an Ilokano, proudly gave us a bottle of bagoong that she had personally fermented.
The bagoong (fermented fish paste) looked different from what we were used to. It was peach in color with a streak of light purple. It had a sweet pungent smell unlike common bagoong. To our surprise, her bagoong was made from fresh Alaskan salmon. Indeed, you could catch whiff of salmon aroma. Because we relished her bagoong so rich in flavor and smell, it was sparingly used as a special table condiment and never for cooking.
I found out recently that Nanay Leonor had returned to the Philippines about 10 years ago to spend quality time with her children and family. It was a good opportunity for us to meet again so I could learn more about salmon bagoong. She had worked in Alaska during summer and winter months, three months per season or a total of six months in a year. As a seafood processor, an employee was assigned tasks that could include sorting, cutting, cleaning, and grading different kinds of salmon; packing salmon roe; cleaning cans and filling them up. Her task was packing salmon roe in tins.
MAKING ALASKAN SALMON BAGOONG
Depending on the kind of salmon, salmon bagoong would have slightly different tastes. Nanay Leonor said that she ferments three types of salmon meat. Sockeye has a rich, deep reddish color and high oil content. Silver coho meat is more orange than red and has a mild flavor. Humpy is pale pink in color, light in texture, and low in fat content.
Through a mechanized cannery process on an assembly line, salmon belly is extracted from a whole fish. Head and tail are also removed, and the fish is stripped of its skin, fishbone, and intestines. The undesired fish parts are discarded.
Hardworking Ilokano seafood processors save the fishbone (called siit in their language) of red, silver, and pink salmons. They scrape off all remaining meat and mash it with salmon gut. Then rock salt is added to the mixture in a combination of one part rock salt and five parts mashed salmon meat and gut. Nanay Leonor advises that the salmon gut is a valuable ingredient. It makes bagoong more liquid and softer in texture than if pure salmon fish meat were fermented. The salmon mixture is then placed in a plastic pail, covered, and stored for one month or more to ferment. If fish sauce (patis) is desired as a by-product, fermentation should be lengthened. Patis is an orange liquid floating atop salmon bagoong.
SALMON BAGOONG AS GOURMET SEASONING FOR SIMPLE DISHES
Salmon bagoong can be used as sawsawan (dipping sauce) or table seasoning for slices of singkamas (turnip) and unripe mango. It is also a flavor enhancer for simple home-cooked dishes like picadillo (ground beef sautéed with potatoes and carrots or misua noodles) and bloodless batchoy (pork liver, kidney, heart, spleen, and tenderloin sautéed with kutchay [garlic chives] leaves) enjoyed at breakfast.
Salmon bagoong is a testament to the inspirational traits of Ilokanos who find ingredients in foreign lands to assure their favorite seasoning is on hand always.

Netflix to boost Asian push with original content

By Zsarlene B. Chua
Reporter
NETFLIX LAUNCHED its plan to focus on strengthening its Asian market as it announced 17 Asian original productions from Korea, India and Southeast Asia with more on the way, the streaming service’s executives said in a two-day conference in Singapore.
“We’ve got plans to pretty aggressively program throughout the region, planning 100 regional productions — series, specials and films — throughout Asia,” Theodore Anthony Sarandos Jr., chief content officer of Netflix, told the media during a press briefing on Nov. 9 as part of the conference in Singapore.
He added that they’re just getting started in Asia as they continue to look and “tell stories that are really, really locally relevant for each country…and that’s really been our strategy: to create the best, most authentic shows in as many places as we can in the world.”
During the two-day conference dubbed See What’s Next Asia, Netflix announced 17 Asian originals including Thai-language originals, five animated series (which includes an animated adaptation of Budjette Tan and Kajo Baldisimo’s Trese graphic novel set in Manila), Indian originals, South Korean originals (this includes zombie historical epic, KINGDOM, which despite having a Jan. 25, 2019 premiere date, has already been renewed for a second season) and a Chinese-language original from Taiwan (Triad Princess).
The newest titles are welcome additions to Netflix’s first foray into Asian programming which includes the South Korean variety-comedy series BUSTED! India’s crime-thriller Sacred Games and Japan’s animated series, DEVILMAN crybaby.
Next year, Mr. Sarandos said they will be “most definitely” be increasing their content budget which was pegged at $8 billion this year, though an assessment by Goldman Sachs in July pointed out that the streaming giant’s content spending will land more between $12 to $13 billion this year with 85% spent on original programming alone.
THE FOCUS ON ASIA
Netflix ended the third quarter of 2018 with 137 million subscribers, up almost seven million from the quarter before. Of the 137 million subscribers on the service, 58.46 million are from the United States, according to statistics portal, Statista.
This means that much of Netflix’s subscribers are now outside the US, though Media Partners Asia, a provider of advisory, consulting and research services, noted in a report in April that Asia “plays a modest role in the company’s growth story” as it contributes less than 5% of the global base at the end of 2017.
A number Wilmot Reed Hastings Jr., Netflix CEO, has belied this, saying, “I wouldn’t listen to the analysts very much.”
“Asia has been a great market for us. You can see the acceleration in our overall numbers: several years ago we were only growing by ten or 20 million new members per year, now it’s 25-30 [million] and that’s really a contribution [from the region],” Mr. Hastings said in a press conference on Nov. 9.
Netflix entered Asia and much of the world at the start of 2016.
But the focus on Asia isn’t contained on growing the subscribers within the region as Netflix observed that there is a big market for Asian content outside Asia.
“More than half of Asian content hours viewed on Netflix this year are viewed outside the region,” Mr. Sarandos said in a presentation during the conference.
“So we have confidence that our upcoming slate of Asian productions will find fans in their home countries and abroad,” he added.
THE COMPETITION
In August, Netflix reported that it released 88% more programming for 2018 than it did for the same period in 2017, according to Fortune. But this doesn’t mean that Netflix will, if ever, stop being an aggregator of content and focus on original-only programming.
“Aggregation is an important part [of the business]. We’re not trying to be Netflix content only, we’re trying to be customer-pleasing as the main thing we focus on,” Mr. Hastings said, explaining that studios and producers like Disney “might pull back” their content from the Netflix service — that’s why the company needs to invest in their own content to differentiate themselves from their competitors like Amazon, HBO and the soon-to-be-launched Disney+ service which is expected to be rolled out in the US in late 2019.
“We’re used to competition,” Mr. Hastings said. “Amazon has been competing with for ten years and HBO for 14 years.”
“It’s just up to each service to try and do great content. And if all of us are fighting for more consumer attention, then the consumer has many choices…and it does force us to do really great creative work because HBO, Disney, they are really impressive,” he explained. (He also noted as an aside that the “Disney service looks great” and he will probably subscribe to it).
Netflix’s focus on aggressiveness on original content has created a negative cash flow that is expected to be between $3 to $4 billion in 2018, larger than 2017’s $2 billion, according to the company’s letter to its shareholders in January 2018 but Mr. Hastings said it is not a cause for concern as it is a consequence of being in “hypergrowth” when it comes to producing original content.
“Something like the internet only comes by once in 50 or a hundred years — a change like this. So our investors are pushing us to go faster and faster and we need to be producing creative content…think of it as a minor thing for investor standpoint and a great thing for consumer standpoint because we produce a lot more than we would otherwise,” Mr. Hastings explained.
“Someday, the growth will be slower and we should be cash flow positive but while we are in this hypergrowth around the world and that does consume cash and our investors are comfortable with that,” he added.

The new Momofuku is in Columbus Circle. Don’t tell David Chang

By Kate Krader, Bloomberg
SINCE HE opened his first Momofuku Noodle Bar in a no-frills East Village storefront in 2004, David Chang has become renowned as a chef who shakes things up.
The third floor of the Shops at Columbus Circle, in midtown Manhattan, is not the place I would imagine Chang doing that. Yet Chang and his team are embracing the location of his second New York Noodle Bar, opening on Nov. 15. But the notoriously stubborn chef won’t call it “the Shops at Columbus Circle,” the name owner Related Co. insists on. “I will always say ‘Time Warner Center,’” says Chang.
I spent a lot of time at the original Noodle Bar, most recently home to Momofuku’s fried chicken-sandwich takeout spot, Fuku. There were 22 seats, about six items on the menu, and OB beer, with $1 bottles of Poland Spring water. Since then, his empire has grown to include restaurants in New York, Sydney, Toronto, Los Angeles, Las Vegas, and Washington.
The new Momofuku has a designer — Inc. Architecture & Design — and 90-plus seats, most of them stylish booths, as well as a dedicated cocktail bar and a private dining room. At the helm is executive chef Tony Kim, who ran the Noodle Bar kitchen after it shifted a few doors to its present location.
“Yeah, we’re on the third floor of a shopping mall,” Chang tells me. “You don’t think there’s going to be a heartbeat, so we’re trying to create the sense of controlled chaos.” In a preview Chang gave me in early November, I was able to check out some of the highlights.
THE SPECIALS BOARD
To combat the mall setting, Chang created a feature that invigorates the location while combating the clamor for such signature dishes as pork-belly-stuffed buns and ramen. “How do you do nostalgia without being stuck in it? You have to have a new menu every day,” he answers.
The new location boasts a train station-style departure board over the bar that cycles through specials. “Whole Dover Sole @7.30,” and “Black Truffle Ramen” are some of the dishes that could pop up and then disappear when they sell out. Chang credits his constant travel. “I have been living in train stations and on airplanes. We created a Warby Parker board; it’s the same concept as a chalkboard, but it’s constantly updating.”
THE RAMEN
Like a sequel in the Avengers series, Momofuku has taken its greatest hits and updated them. The biggest change for any fans (me) of their ramen template is that the noodles are now custom made, in partnership with Sun Noodles. The result is strands with a more pronounced grain flavor.
Most significant, they’re more durable and stay relatively firm in a bowl of broth for upward of 30 minutes, the equivalent of a ramen superpower. “Back in the day, I would say, eat your food and get out of here; the noodles don’t wait,” says Chang. “Chang won’t be cooking here,” says Kim.
Those noodles come into play in the spicy beef ramen with chunks of short rib and the garlic chicken ramen with the Asian leafy green, yu choy. The signature bowl is smoked pork ramen. The deep, brown broth is chicken-based, with a fresh, crunchy wedge of bamboo floating on top, bumping into the caramelized pork slice and slow-poached egg yolk. “When we started adding slow-poached eggs to ramen, no one was doing it. We couldn’t afford the labor to peel hard-boiled eggs,” says Chang.
He sees this as the culmination of the ramen he’s been making over the 14 years he’s been serving it: version 14.0. “There are stretches when our ramen has been bad; we changed the broth, we went to pork, we went away from pork. It’s like a sports team — you have some bad seasons.” The ramen price will be in the high teens.
THE BUNS
Chang has seen his pork belly buns copied around the world, but he decided to embrace the steamed bun instead of running away from it. “If everyone is making one, we have to be the best-in-class,” he says.
The team is now making the buns in-house, too. The process is neither labor- nor space efficient, according to Kim: Every day, two to four cooks are dedicated to preparing them; it is also the base of the flatbread rotisserie meat sandwiches at the adjacent, just-opened Bang Bar.
The signature bun at midtown Noodle Bar is the French dip — fans of the pork belly version will have to wait for it to make an appearance on the specials board. “I’ve been eating a lot of French dips in L.A.,” explains Chang. Here, they are filled with chunks of braised short rib and onion with a bowl — shaped like a fancy shell — of black vinegar-spiked broth. “This bun is the hardest thing we’re doing in this restaurant. Tim Ho Wan [the Michelin-starred dim sum expert] doesn’t mess around with the shape of dough. But we’re embracing the artisanship,” says Kim.
I found them sweet and puffy, with a pillowy, chewy bite.
THE DRINKS
The new Noodle Bar is a dedicated spot for drinks that, by itself, is about as big as the original Noodle Bar counter. Momofuku bar director Lucas Swallows worked with Anne Robinson (a Booker & Dax alum) to create what they call a “House Soda Fountain.” Their Highball Program includes the Sundial, made with tequila, suze, and clarified orange cordial and decorated with little orange cut outs. The Fun Guy features soju infused with dried shiitake and vermouth, with results unexpectedly like a cream soda.
THE NEW SIGNATURES
Kim and his kitchen are pushing a handful of dishes that have made appearances at East Village Noodle Bar. Oxtail soup is served in a handsome Le Creuset pot, with rice cakes in a spicy broth. The meat is bone-in; Chang suggests customers pick it up with their hands. The same goes for the head-on Szechuan shrimp: a plate of plump shellfish coated in a piquant spice mix of coriander, cumin, and Szechuan peppercorn.
The team is considering serving then without silverware, so customers will be forced to eat with their hands. “There’s a lot of reasons for this dish. Head-on shrimp are the most delish, easiest way to eat them. People eat soft-shell crab; this is essentially that,” says Chang. I told him I would eat the whole thing but not the top of the head, with those giant eyes staring up at me. “You don’t have to eat them,” he said. He didn’t eat them, either.

Epson launches inkjet printer for enterprises

EPSON HAS launched a new linehead multifunction inkjet printer for enterprise use.
Epson’s WorkForce Enterprise WF-C20590 is a high-speed office printer and copier, which delivers simplex and duplex output at a lower cost and easy maintenance for less downtime, it said.
“The PrecisionCore Line Head WorkForce Enterprise MFP is capable of achieving a blistering 100ppm (pages per minute) in both simplex and duplex modes — matching or surpassing most laser printers. The implications for productivity are obvious — the less time spent waiting for a print or copy job to complete, the more time available for other pressing tasks,” Epson said in a statement.
Unlike a laser printer, Epson said the inkjet WorkForce Enterprise doesn’t need to warm up and starts printing immediately. Because no heat is used in the printing process, its power consumption is as much as 75% lower than an average laser.
Meanwhile, the WorkForce Enterprise’s Precisioncore linehead technology lets it produce consistent image quality at ultra-fast printing speeds.
“The printer’s innovations include an electrostatic transport belt that ensures the paper is always completely flat so that it produces consistently sharp images, and a self-maintaining print head. This latter feature monitors nozzle health and automatically detects and adjusts print head performance, reducing the issue of clogged ink nozzles,” Epson said.
Its cartridges can also print up to 100,000 pages in black and 50,000 pages in color each, reducing the need for constant replacement.
The printer likewise supports a wide range of specialist papers up to 350gsm.
Aside from printing, the multifunction product allows users to copy, scan to email and more, and comes with management tools and security features such as authentication and administrative functions.

Strong sales lift SSI’s bottom line in Q3

SSI GROUP, Inc. grew its profit by a fourth in the July to September period, boosted by higher sales across its brands.
In a regulatory filing, the specialty store retailer reported a net income of P84.77 million in the third quarter of 2018, against P67.7 million in the same period a year ago. This brought nine-month earnings 8% higher to P368.05 million.
Net sales for the quarter ending September reached P4.53 billion, 10% higher year-on-year, for a total of P13.79 billion from January to September. This marks an 11% growth from the same period a year ago, despite a 7.6% annual drop in total selling area.
SSI attributed the robust sales growth to “strong consumer demand coupled with selective price increases.”
During the nine-month period, fast fashion sales went up 3% to P4.74 billion, while luxury and bridge brands generated 27% higher sales at P3.5 billion. SSI’s fast fashion brands include Zara and Bershka, while its luxury lines include Prada, Burberry and Tod’s.
SSI’s same-store sales growth stood at 12.9% in the third quarter, and accelerated to 12% in the first nine months of the year.
“The Group posted strong third quarter results driven by resilient mid and high end discretionary spending as well as by the firming up of gross profit margins,” SSI President Anthony T. Huang said in a statement.
The company operates a network consisting of 95 brands, including international luxury brands Hermes, Gucci, and Salvatore Ferragamo, among others.
“Within a more volatile macro economic environment the Group continues to benefit from the strength of its brand portfolio and its store network and from the work that we have put into optimizing our expense base,” Mr. Huang said.
Shares in SSI picked up 2.63% or seven centavos to close at P2.73 each on Wednesday. — Arra B. Francia

Bids for term deposits down ahead of BSP review

By Melissa Luz T. Lopez, Senior Reporter
DEMAND for term deposits waned this week ahead of the central bank’s upcoming policy review, with players also seeking higher yields amid uncertainty on interest rates.
Banks offered to place P65.626 billion under the term deposit facility (TDF) on Wednesday, plunging from the P95.901 billion which bids received the previous week and settling well below the P90 billion the Bangko Sentral ng Pilipinas (BSP) put up for auction.
Tenders were slashed across all tenors as banks were reluctant to lock in their funds, leaving all three undersubscribed despite a lower auction amount.
This comes a day ahead of the BSP’s policy meeting, where market players are torn on whether the central bank will keep rates steady or raise by another 25 basis points (bp). This will follow four consecutive tightening moves worth 150 bps since May, which brought benchmark yields to a 4-5% range.
Inflation steadied at 6.7% in October, while third-quarter economic growth softened to 6.1%.
Appetite for the seven-day deposits paled to P35.409 billion yesterday, down from the P50.17 billion bids received last week to settle lower than the central bank’s P50-billion offering. In turn, players asked for higher yields which averaged 4.8291%, up eight basis points from the 4.7442% fetched the previous auction.
The 14-day tenor also received softer demand this week as offers totalled P19.32 billion, slipping from P29.563 billion the prior week and failing to fill the P20-billion auction amount. In turn, banks sought bigger margins to fetch a 4.8642% average, ticking higher from the 4.789% fetched during the Nov. 7 exercise.
The same trend was observed for the 28-day papers as it scraped just P10.897 billion in total tenders versus the P20 billion which the BSP offered to sell. The amount is also lower than the P16.168 billion demand seen the previous week.
Given this, players sought to maximize yields as they asked for 4.85-5% returns, hitting an average of 4.9162% from 4.901% a week ago.
Since June 2016, the central bank has been counting on the TDF to capture excess liquidity and influence short-term rates in the financial system. Through the weekly auctions, the BSP can bring market and interbank closer to its desired range by setting the standard for short-term instruments using the margins that they pay to banks for these placements.
Sought for comment, BSP Deputy Governor Diwa C. Guinigundo said market forces continue to dictate changes in TDF yields.
“Volume appears higher than actual liquidity that is now available in the market. Apparently, banks continue to have greater uses for lending, investment and some FX (foreign exchange) purchases,” Mr. Guinigundo said in a text message to reporters. “As a result, TDF rates climbed higher. It’s a normal market development.”
Market players have said that liquidity is tight in recent weeks, with more entities looking to borrow funds to support their requirements.
For next week’s auction, the central bank is offering P70 billion in term deposits: P40 billion for the seven-day term, P20 billion for the 14-day and P10 billion for the 28-day tenor.

Cebu’s Rico’s Lechon opens its biggest branch in Pasig’s Tiendesitas

IT TOOK a while for a franchiser’s ambition to bring Rico’s Lechon, the popular lechon (roast pig) brand of Cebu to Manila.
“(For) more than five years, I’ve been talking to the owner, Rico Dionson, [about] wanting to franchise it,” Meat Concepts Corp. CEO George Pua told BusinessWorld at the restaurant’s launch on Oct. 24.
As an avid fan of lechon, Mr. Pua was adamant about pursuing a franchise in Manila. Instead the owner offered a sell his 23-year-old brand.
“Last December [2017], the owner offered if our company wanted to purchase the whole thing,” Mr. Pua said. “I told him, ‘I think you know the answer.’”
In May 2018, Meat Concepts Corp. announced its acquisition of the Rico’s Lechon.
Last month, the largest branch of Rico’s Lechon in the country opened in Tiendesitas in Pasig City. It fills a 733 square meter space and has a seating capacity of 300. Featuring its signature tropical safari interior, the restaurant includes a take-out area, and seven VIP rooms which are named after districts in Cebu.
Mr. Pua said that the space was offered to their company and that he is glad about its location since Tiendesitas is “at the center of everything,” adding that Pasig is accessible to other cities.
The Tiendesitas branch offers new dishes that are available exclusively at the store. These dishes include lechon kare-kare (a peanut sauce-based stew), beef tripe kare-kare, tokwa at lechon baboy (tofu with roast pork), and lechon lumpiang shanghai (spring rolls), as well as desserts: buchi (mung bean paste-filled, deep-fried sesame-covered sweet rice balls) with caramel sauce and maja kalabasa (a coconut milk based dessert, made with pumpkin in this version).
“From this store onwards, we will be launching new dishes that would be special for the store only,” Mr. Pua said, adding that the new dishes will be made available in the other branches around Manila depending on customer reception after a month.
He said that a branch of Rico’s Lechon is set to open within the month in UP Town Center in Quezon City, and its biggest provincial branch will open in Mandaue, Cebu in 2019.
Rico’s Lechon in Tiendesistas is located at the 1st Level, Food Village Bldg. B, Ortigas East, Barangay Ugong in Pasig City. It is open from 10 a.m. to 10 p.m. — Michelle Anne P. Soliman

China scours social media, erases thousands of accounts

BEIJING — China’s top cyber authority has scrubbed 9,800 social media accounts of independent news providers deemed to have posted sensational, vulgar or politically harmful content on the Internet, it said late on Monday.
China’s strict online censorship rules have tightened in recent years with new legislation to restrict media outlets, surveillance measures for media sites and rolling campaigns to remove content deemed unacceptable.
The Cyberspace Administration of China (CAC) said in a statement that the campaign, launched on Oct. 20, had erased the accounts for violations that included “spreading politically harmful information, maliciously falsifying (Chinese Communist) party history, slandering heroes and defaming the nation’s image.”
CAC also summoned social media giants, including Tencent’s (0700.HK) Wechat and Sina-owned Weibo, warning them against failing to prevent “uncivilized growth” and “all kinds of chaos” among independent media on their platforms.
“The chaos among self-media accounts has seriously trampled on the dignity of the law and damaged the interests of the masses,” CAC said.
The term “self-media” is mostly used on Chinese social media to describe independent news accounts that produce original content but are not officially registered with the authorities.
Such accounts have proliferated in recent years and range from hard-hitting investigative journalism to celebrity gossip or lewd content. Many are hugely popular due to offering more novel and sensational news than official sources.
Online commentators noted that some of the accounts closed had been sharing false or pornographic content — both of which are illegal in China — but also lamented that some of the accounts targeted in this latest sweep appeared to have merely been too critical.
One Weibo user questioned why an art and entertainment blog called “youshuguang” was blocked.
“The one I really don’t get is youshuguang, who made no sign of violations and wrote emotive content in a well-behaved manner. Why were they still blocked?” the Weibo user wrote.
“You get blocked if you write the truth, get blocked if you write lies, so what are we now supposed to say?”
NGOCN, an group that produced popular articles about social issues in China, also had two accounts deleted but pledged in a statement to continue producing content.
“This is an era of accounts being obliterated,” the group said. “It went from a single article being blocked, to the censorship of some prohibited speech… then today all of a sudden, we have no account.” — Reuters