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Alternergy Holdings set to start construction of Bataan solar farm

ALTERNERGY Holdings Corp. is set to begin constructing its 28 megawatt-peak Solana Solar Power Project in Hermosa, Bataan, it said on Wednesday.

Alternergy and its sub-holding company Solar Pacific Energy Corp., which wholly owns Solana Solar Alpha, Inc., has broken ground on the project, which has an estimated cost of P1.5 billion.

“The ALTER Group is full steam ahead as we break ground for the Solana Solar Power Project, our third project to be completed this year,” Alternergy Chairman Vicente S. Pérez, Jr. said in a statement.

Mr. Pérez said that they will contribute a total of 204 megawatts (MW) of renewable energy capacity to the grid by the end of 2025 with their latest project, along with the expected completion of Alabat and Tanay Wind Power Projects, which have also started construction.

These projects will accelerate its move toward its target to reach 500 MW of total generating capacity by 2026, Alternergy said.

Mr. Pérez said the Solar Power Project is expected to issue the notice to proceed for the construction immediately as it is slated for completion by the first quarter of 2025.

“The host communities of our projects are our immediate stakeholder and support. We look forward to continuing working with the Bataan Province and Hermosa Municipality as we move forward with the construction,” Alternergy President Gerry P. Magbanua said.

Solar Pacific President Michael Lichtenfeld said they are “on the active lookout” for new projects and will be ready to file for new service contracts with the Department of Energy once the moratorium is lifted.

Alternergy aims to develop up to 474 MW of additional wind, solar, and run-of-river hydro projects.

Shares in the company fell by two centavos or 2.82% to close at 69 centavos apiece on Wednesday. — Sheldeen Joy Talavera

The difference between Tanduay rum here and Tanduay rum abroad

The really good stuff is made for export

IF YOUR tito drinks Tanduay rum here, he’d just be any other tippler. If your tito drinks Tanduay rum in the States, he might be a man of taste.

On July 16, Tanduay held a masterclass at Poblacion’s Oto (which is included in The World’s 50 Best Restaurants’ Discovery list) where they showed off their export-quality rums, namely: Tanduay Asian Rum Gold and Silver, Tanduay Double Rum, and Especia Spiced Rum.

If you haven’t heard of any of these before, that’s because most of these are for export, and only limited qualities are available here. Janno Gironella, R&D Head for Tanduay Distillers Inc. told BusinessWorld in a mix of English and Filipino in an interview, “For local, our strategy is more of a value rum. For export, the opportunity for premium products is greater.”

“They’re more receptive to premium products, and they are very eager to try rums and spirits coming from Asia,” he said of their export markets.

GRAPEFUIT, CARAMEL, AND COCONUT TASTES
Silver is only moderately filtered, which gives it a light straw appearance. It’s aged up to five years in ex-bourbon barrels, with a sharp grapefruitaste and a clean finish.

Gold, meanwhile, is aged up to seven years. To our palate, it tasted a bit sharp, like black pepper, and had a hint of burnt sugar. To our nose, it had a caramel note, but the finish was juicier and fruitier than its younger sibling.

Double Rum is made from a blend of rums aged five and 16 years, which are combined in ex-bourbon barrels for two years. This had a woody scent, akin to cedarwood, and had a warm swallow and more than a hint of fruitcake.

As for our (personal) favorite, Especia, it’s made from heirloom sugarcane and has been infused with spices. It had an interesting scent: we knew someone who was drawn to perfumes that smelled like a loose woman on the beach (her words). That meant sunlight, coconut, and spices, and it smelled exactly like her. That said, the taste was elegant and sweet, with a bit of a cloying warmth.

INCREASE IN LIQUOR SALES
Back to your uncle: in a press release from the Tan-controlled LT Group (which includes Tanduay Distillers, Inc., and sister companies Philippine NatBank and Asia Brewery, Inc., among others), it reported an increase in liquor sales by volume in 2022 to 27.49 million cases from 23.69 million cases in 2021. Statista, meanwhile, reports that Bacardi sold 21.1 million cases in the same year. Forget the Olympics, the Philippines is winning in another game.

“It’s primarily driven by Filipino consumers,” said Mr. Gironella. “That’s why we’re very eager to expand our products outside the Philippines.” He told us that they were expanding their ready-to-drink lines and their light-spirit alcohol, as well as introducing a “super-premium” rum in the export market called the Tesoro.

“We really believe in the quality of our rums. You wouldn’t last that long kung di rin talaga masarap iyong rum (if your rum isn’t really delicious).”

For the record, the rum was first made in 1854 (marking this year as their 170th).

“We pride ourselves that truly Filipino-made iyong products namin,” he said. “We pride ourselves in collaborating with our local farmers, local distilleries. As opposed to (other brands), they couldn’t claim fully that they source their materials locally.” — Joseph L. Garcia

TDF yields inch up on lower bids, inflation worries

BW FILE PHOTO

YIELDS on the term deposits auctioned off by the Bangko Sentral ng Pilipinas (BSP) inched higher on Wednesday as the offer went undersubscribed and amid renewed inflation concerns after a typhoon hit the Philippine capital.

Demand for the BSP’s term deposit facility (TDF) totaled P121.893 billion on Wednesday, lower than the P250 billion placed on the auction block and the P181.978 billion in tenders seen for a P240-billion offer last week.

Broken down, the seven-day deposits attracted tenders amounting to P51.047 billion, lower than the P120-billion offering as well as the P99.977 billion in bids recorded the prior week.

Rates for the one-week papers ranged from 6.4925% to 6.525%, a tad narrower and lower than the 6.495% to 6.53% range recorded in the previous week. This brought the average rate for the tenor to 6.5161%, inching up by 0.63 basis point (bp) from the 6.5098% seen on July 26.

Meanwhile, tenders for the 14-day deposits reached P70.846 billion, below the P130-billion offering and the P82.001 billion in bids last week for the P120 billion placed on the auction block.

Accepted yields were from 6.52% to 6.575%, wider than the 6.53% to 6.565% margin logged a week prior. This brought the average rate of the two-week deposits to 6.5494%, up by 0.48 bp from the 6.5446% logged last week.

The central bank has not auctioned off 28-day term deposits for more than three years to give way to its weekly offerings of securities with the same tenor.

The term deposits and the 28-day bills are used by the BSP to mop up excess liquidity in the financial system and to better guide market rates.

TDF yields were slightly higher week on week on Thursday as the market expects inflation to accelerate due to the impact of Typhoon Carina (Gaemi) and a southwest monsoon that caused torrential rains in Metro Manila and its nearby provinces, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“Most BSP TDF average auction yields mostly corrected slightly higher after the typhoon damage by Typhoon Carina that could lead to some temporary pickup in prices,” Mr. Ricafort said.

Latest data from the Agriculture department showed that agricultural damage due to the typhoon and southwest monsoon hit P1.21 billion as of July 31.

Rice was the most affected crop, accounting for 52.47% of the damage or P635.17 million.

The BSP’s month-ahead forecast showed that inflation likely settled within 4% to 4.8% in July. If realized, this would be faster than the 3.7% print in June.

The upper end of the central bank’s forecast would also mark the first time in seven months that inflation breached the BSP’s 2-4% annual target.

July inflation data will be released on Aug. 6.

“BSP TDF auction yields also corrected slightly higher after lower total bids compared to the previous week,” Mr. Ricafort added. — Luisa Maria Jacinta C. Jocson

New quay cranes at ICTSI’s Manila port now operational

ICTSI PHOTO

RAZON-LED International Container Terminal Services, Inc. (ICTSI) on Wednesday said its three new quay cranes at Manila International Container Terminal (MICT) are now operational, boosting its capacity.

“The acquisition of these new quay cranes represents a significant step forward to MICT’s expansion and modernization. Their addition enables us to handle cargo loads more efficiently, leading to faster vessel turnaround times and better operations overall,” MICT Chief Executive Officer Christian L. Lozano said in a statement.

Operated by ICTSI, MICT is one of the three terminals in the Port of Manila. It has the largest quay crane fleet with 18 units to date.

“The operational efficiencies contributed by the new cranes enable the terminal to better manage peak periods and high cargo volumes, ensuring smoother and more predictable operations for all stakeholders. These improvements enhance the overall customer experience, providing shippers and consignees with more reliable and timely services,” ICTSI said.

It added that the commissioning of the three cranes “underscores MICT’s commitment to providing the highest levels of port services and boosts the terminal’s capacity to handle the increasing demands of modern container shipping.”

Meanwhile, the Manila terminal has also started the second phase of its Berth 8 expansion, which would include the construction of a 300-meter wharf and 10-hectare container yard, ICTSI said.

Once completed, the expansion will increase MICT’s capacity to 3.5 million twenty-foot equivalent units (TEUs), boosting its current capacity by 200,000 TEUs.

The Berth 8 will be equipped with three quay cranes for handling large capacity vessels with a capacity of up to 18,000 TEUs, ICTSI said. The new cranes are expected to arrive in 2027.

Last year, the company said adding a new berth in Manila is expected to cost P15 billion and would allow it to serve more large foreign vessels.

ICTSI operates 33 terminals in 20 countries across six continents.

Its shares rose by P3 or 0.85% to end at P356 apiece on Wednesday. — Ashley Erika O. Jose

Bacolod Rum Fest, a toast to Tanduay’s 170th year

By Chelsea Visto

TOP RUM producer Tanduay Distillers, Inc. marks its 170th anniversary with the return of the Rum Festival at the Bacolod City Government Center from Aug. 10 to 18.

Now in its fourth installment, the festival is a testament to how Bacolodnons love their booze, food, and tunes.

Flairtending competitions, culinary exhibits and competitions, rum masterclasses, parades, and street dancing are in store during the nine-day celebration. There will also be Rum and Music Nights every day at the Food Park of the Bacolod Government Center where most of the events will be held.

The festival highlight is the annual concert, where original Pilipino music (OPM) powerhouses like Sandwich and Ely Buendia have previously performed. This year, Tanduay promises to kick the party up a notch by inviting two headliners to the show — rock band Juan Karlos and hip-hop quartet ALLMO$T.

Bacolod is once again expecting a swarm of tourists, after drawing a record-breaking attendance of 35,000 people during Arthur Nery’s set in 2022.

The rum festival has historically only been staged in Bacolod, the sugar capital of the Philippines. Its province, Negros Occidental, cultivates over 190,000 hectares of sugarcane, the ingredient essential to rum production.  “Bacolod is one of the provinces or cities that has the biggest consumption, compared to all other branches in Visayas and Mindanao,” said City Councilor Em Ang during a press conference announcing the event on July 30 at the Century Park Hotel in Manila.

Today, Tanduay is the best-selling rum brand worldwide, said Lucio Tan III, President and Chief Operations Officer of Tanduay Distillers, Inc., and that is a title they’ve held for seven consecutive years he said. Their consistently high demand has allowed them to expand to other Southeast Asian countries, the United States, and Europe.

“Many rum drinkers do not know that most of the Tanduay rum they drink is produced in Bacolod. For a long time, the rum production in Bacolod has been there. It should be celebrated, just like many other things that we celebrate in the city,” Ms. Ang said.

Much like how the famous Oktoberfest is held yearly in late September through early October, the rum festival is typically slated in August. Thanks to the festival, Bacolod enjoys an economic boost and bustling tourism at that time, said the city’s Chief Tourism Operations Officer Ma. Teresa Manalili during the press conference. “The tourism arrivals now in Bacolod City, year 2023, is around 780,916, contributing to around P7 billion in tourism receipts. That is a bigger impact to our local community, especially with revenues, livelihood, and job generation in Bacolod City,” she said.

Although the rum festival is popular locally, Tanduay aspires to also promote their flagship event to foreign visitors. They hope to achieve the same commercial success as Bacolod’s Masskara Festival, one of the largest festivals in the country, attracting thousands of local and international visitors yearly.

BPI shortens SEED Bonds offer period

BW FILE PHOTO

BANK of the Philippine Islands (BPI) has shortened the offer period for its 1.5-year Sustainable, Environmental, and Equitable Development (SEED) Bonds amid strong investor demand, it said on Wednesday.

“Following overwhelming demand across institutional, high-net worth and retail clients, the Bank of the Philippine Islands has decided to shorten the public offer period for its 1.5-year peso-denominated fixed-rate BPI Sustainable, Environmental, and Equitable Development Bonds,” BPI said in a disclosure to the stock exchange.

“The offer, which was originally set to run from July 19, 2024 to Aug. 2, 2024, will now close early on Aug. 1, 2024. The bank expresses its gratitude to the investing public’s strong support for the offer,” it said.

BPI is looking to raise at least P5 billion through the 1.5-year papers with an option to upsize.

It earlier said that net proceeds from the BPI SEED Bonds will be used to finance or refinance new or existing eligible green and/or social projects consistent with its Sustainable Funding Framework.

It added that it will use the offering as an opportunity to promote projects that contribute to the United Nations’ Sustainable Development Goals.

The Securities and Exchange Commission on July 18 confirmed that the BPI SEED Bonds qualify as ASEAN Sustainability Bonds.

The papers are priced at 6.2% per annum payable quarterly. The bank is selling the bonds for a minimum investment amount of P500,000 and additional increments of P100,000.

BPI will issue the SEED Bonds and list them on the Philippine Dealing and Exchange Corp. on Aug. 9.

The bank tapped BPI Capital Corp. and Standard Chartered Bank as the joint lead arrangers and selling agents for the bond offer.

BPI’s net income grew by 17.5% to P15.3 billion in the second quarter on the back of higher revenue growth.

Its shares dropped by 80 centavos or 0.66% to end at P121.30 apiece on Wednesday. — A.M.C. Sy

​Disclosure of AI use to boost consumer trust in PHL brands

REUTERS

BRANDS’ disclosure of how their data is used for artificial intelligence (AI) is expected to increase consumer trust and revenues, consumer engagement platform Twilio said.

“Their ability to move beyond personalization will lead to greater trust being built in those brands. By default, what should flow from there is increased revenue and profits,” Nicholas Kontopoulos, vice-president of marketing in Asia-Pacific and Japan at Twilio, told BusinessWorld on July 18.

Mr. Kontopoulos said informing users on AI use could signal responsibility and be a differentiator for the brand, as this would build rapport, transparency, and accountability.

Twilio’s 2024 State of Customer Engagement Report showed 77% of Filipino consumers demand transparency on how their data is being used in AI, which was the highest percentage among 18 countries surveyed.

This stems from digital maturity among customers and businesses, which shows the importance of data and how these will affect businesses going forward, Mr. Kontopoulos said.

However, the report showed that only 53% of local brands are meeting this expectation. These brands are also less likely to inform consumers when interacting with AI (41%) and disclose with whom customer data is shared (30%).

Twilio’s study also showed that 33% of consumers surveyed will spend more if AI improves customer service. Meanwhile, 78% reported they are likely to stop using a platform that doesn’t personalize engagement.

Among brands, e-commerce retail store Zalora employs Twilio’s AI-powered customer data platform Segment to provide its users with a personalized shopping experience.

Meanwhile, logistics application Lalamove uses AI in its chat system to connect its delivery drivers with customers without compromising personal data, Twilio added.

For entities planning to disclose their use of AI to consumers, Mr. Kontopoulos said they should also consider how they do it.

“There’s no one-size-fits-all approach, but I would start thinking about developing a framework like the Nutrition AI Guide, making sure a customer is aware that they’re talking to an AI when they’re engaging with a chatbot,” he said.

Firms should also include their AI use policy, he added.

Twilio’s survey covered 4,750 business-to-consumer executives and 6,300 consumers. Its platform is used by over 300,000 global enterprises, digital disruptors, and more than 10 million developers worldwide. — Aubrey Rose A. Inosante

OceanaGold Philippines’ net income down 30.7% in Q2

OCEANAGOLD (Philippines), Inc. saw its net income drop by 30.7% year on year to $14.2 million in the second quarter (Q2) from $20.5 million due to lower ore production.

The company’s revenues dropped 22.1% to $68.8 million in the period from $88.3 million a year prior, it said in a disclosure to the stock exchange.

OceanaGold operates the Didipio gold and copper mine in Nueva Vizcaya.

Gold ore production fell by 28% to 23,100 ounces in the second quarter from 32,200 ounces. Copper output likewise dropped by 18% to 2,800 tons from last year’s 3,400 tons.

Production was affected by the lower ore grade mined during the period, OceanaGold said. It also pushed back the extraction of the higher-grade ore body to the third quarter due to a fatality at the company’s mine site last month.

Meanwhile, the company’s gold sales totaled 18,900 ounces, a 42% drop from 32,700 ounces a year ago. Copper sales fell by 37% to 2,200 tons from 3,500 tons.

The average price for gold during the period was at $2,531 per ounce, while copper prices averaged $4.58 per pound.

“The company sold 33% of the second quarter’s total gold doré to the BSP (Bangko Sentral ng Pilipinas),” it added.

Under the company’s Financial or Technical Assistance Agreement, 60% of its net revenues go to the Philippine government.

The company’s net revenues amounted to $11.4 million during the quarter, down from last year’s $39.7 million. This put the government’s share at $6.9 million.

Meanwhile, for the first semester, OceanaGold’s net income declined by 40% to $25.7 million from $42.6 million the same period in 2023. Its revenues fell by 11% year on year to $160.9 million.

“We expect gold production to increase in the second half of the year as we access higher grade ore and increase mining rates from the underground,” OceanaGold Philippines President Joan D. Adaci-Cattiling said.

“We are also continuing to invest in exploration, both near-mine and regionally, and look forward to sharing results in the future.” Ms. Adaci-Cattiling added.

OceanaGold earlier said it expects to produce 120,000-135,000 ounces of gold and 12,000-14,000 tons of copper this year. It is spending $2 million this year on drilling and exploration for an ore body in Nueva Viscaya.

OceanaGold shares fell by 2.32% or 32 centavos to close at P13.48 apiece on Wednesday. — Adrian H. Halili

The Tantocos return to the grocery game

But this time they are going artisanal

THE TANTOCOS are going back to the grocery game, and who better to help them than a long-missed family member?

In 2018, the Tantoco family sold the Rustan’s Supermarket and Shopwise brands to the Gokongwei family’s Robinsons Retail Holdings, Inc. Joel’s Place marks their return to that business, but as Donnie Tantoco — its Chief Executive Officer (and concurrent Rustan’s chair) — makes clear, “We’re perfecting this, it’s very new.”

There are currently two branches: the newest one in Glorietta which opened this month, and the first one in Rockwell, which opened late last year.

“Once we find our stride, we’re going to roll out more Joels. Every Joel is better than the previous one,” said Mr. Tantoco.

WHAT’S IN A NAME?
The place is named after the late Jose Luis “Joel” Tantoco, Mr. Tantoco’s brother who passed away in 2007. Asked why, Mr. Tantoco said in an interview with BusinessWorld on July 30, “One serendipitous reason.” Project Joel was a codename they used when he was conceptualizing the project. Then, a British branding company they consulted drew up a list of first names to christen the place, and out of 50, “They said the best one was Joel.”

“In hindsight, it really makes a lot of sense,” he said.

The concept was borne out of trips to Paris, where Mr. Tantoco observed La Grande Épicerie de Paris, as well as smaller stores in the capital of chic. “That was Joel’s favorite place on Earth. That’s where he discovered his dignity, his confidence, his identity. He was very shy until he discovered Paris,” said Mr. Tantoco of his brother.

“We want this to be like second family; a second home of all our customers — including our employees,” he said. “I wanted our company to be an ark in this more tumultuous world.”

MORE THAN A GROCERY STORE
Joel’s Place is several things: it’s a grocery, but it also has a lunch counter with ready-to-eat meals, a deli, a bakery, and it even has a gelato counter with creations by renowned chef Miko Aspiras.

We toured the aisles of the Glorietta branch of Joel’s Place when it opened on July 18: think local produce straight from Filipino farmers, but also luxurious selections like artisanal olive oils, and European butter and meat.

We saw some familiar names (and more incognito ones) at the lunch counter, buying things while wearing tsinelas (but they were Gucci). “Basically, we’re a replacement for cooking at home. We want to be an extension of your kitchen,” said Mr. Tantoco.

During our visit to the Glorietta branch we got to taste some of the lunch counter offerings. We had the salmon bowl, a combination of a croissant and an empanada, and a probiotic soda. The croissant cost less than P100, and was quite filling and delicious on its own (filled as it was with beef stew). The salmon bowl, made with several grains and garnished with several vegetables, had the same quality, but with a hint of refinement. It cost less than P400. That amount can get you to a lot of places in Glorietta, for sure, but few will have the quality that Joel’s Place has to offer.

“We deal direct,” said Mr. Tantoco. “We don’t concession, we run and own everything. We break through the layers that add to the cost.”

At the grocery, this writer saw French brands and Italian ones, and vegetables we wouldn’t have found anywhere else (fresh artichoke hearts, when everybody else has them canned).

FOOD WITH SOUL
“We wanted to work with artisans. We wanted to provide the space where people that are really into their craft, that are really passionate about their product… there’s a soul. We wanted to be that place, whether it’s European, American, Australian, or a Filipino dairy from Bukidnon,” said Mr. Tantoco. “These people aren’t transactional. This is their calling.”

“We’re in the food business, but it’s an aspiration that people have, on so many levels. Gourmet that’s healthy, that’s accessibly priced,” he said. “That’s the world we’re in. We’re not going to go into the commercial, mainsteam side of grocery that we used to do. It’s really all about making these relationships, and creating an ecosystem that works.

“At the heart of it, it’s a community.”

Joel’s Place in Glorietta 4, Makati is open Mondays to Thursdays from 9 a.m. to 9 p.m. and Fridays to Sundays from 9 a.m. to 10 p.m. — Joseph L. Garcia

Central bank amends electronic payment settlement rules for InstaPay, PESONet

BANGKO SENTRAL NG PILIPINAS

ANY planned changes to the settlement of electronic payments coursed through InstaPay and PESONet will now require regulatory approval, the Bangko Sentral ng Pilipinas (BSP) said on Wednesday.

The Monetary Board has approved amended guidelines on the settlement of electronic payments under the National Retail Payment System (NRPS) Framework under Circular No. 1196, the BSP said in a statement.

The changes are “part of ongoing efforts to ensure integrity and efficiency of the payment system,” the central bank added.

“Issued under Circular No. 1196 on June 27, the revised guidelines provide operational flexibility to Automated Clearing Houses (ACHs) organized under the NRPS Framework,” it said.

“The Circular requires prior BSP approval for new rules or enhancements to the settlement of e-payments under the Manual of Regulations for Payment Systems. This ensures that all enhancements to the settlement guidelines of ACHs are thoroughly reviewed and approved by BSP prior to implementation,” the central bank added.

The two ACHs organized under the NPRS Framweork are InstaPay and PESONet. InstaPay is a real-time, low-value electronic fund transfer facility for transactions up to P50,000 and is mostly used for remittances and e-commerce, while PESONet caters to high-value transactions.

“Under the policy, ACHs may now lodge requests with the BSP when they deem that adjustments are necessary to enable more settlement cycles, support faster settlement, and improve the overall efficiency of e-payments,” the central bank said.

“For instance, subject to BSP approval, an ACH may recommend the use of a particular demand deposit account (DDA) maintained with the BSP when settling e-payments, instead of separate DDAs. This can be requested in view of evolving circumstances, or when there are new use cases.”

The latest data from the BSP showed the value of transactions done through InstaPay and PESONet surged by 34.6% to P7.98 trillion as of June.

In terms of volume, transactions done via both clearing houses jumped by 66.1% year on year to 660.7 million.

The BSP, Philippine Payments Management, Inc. and PESONet Steering Committee on July 8 activated the third settlement cycle for PESONet transactions, the central bank announced on Wednesday. 

The PESONet Multiple Batch Settlement facility now has a midday schedule, increasing its batch settlements to three cycles per banking day from the previous two cycles done in the morning and afternoon.

“The roll out of “PESONet 3MBS” shortens clearing intervals within a banking day, improves user experience by enabling faster crediting of funds to recipients’ accounts, and facilitates easier cash flow management for businesses,” the BSP said.

“It likewise enables PESONet participating banks and electronic money issuers to better manage settlement risks as settlement of PESONet transactions are now divided among three batches in a banking day,” it added.

In 2023, digital payments made up 52.8% of the volume of retail transactions. In terms of value, 55.3% of retail transactions last year were done online.

The BSP wanted at least 50% of the volume and value of retail transactions done online by end-2023 under its Digital Payments Transformation Roadmap.

The central bank wants online payments to make up 60-70% of the country’s total retail transaction volume by 2028. — L.M.J.C. Jocson

Microsoft says Azure apps outage began as a DDoS cyberattack

MICROSOFT CORP. said an outage of Azure cloud applications was triggered by a distributed-denial-of-service (DDoS) cyberattack.

The DDoS attack began early Tuesday and an error in Microsoft’s automated protection mechanisms worsened the impact rather than mitigating it, the company said in a status update.

Customers were affected in multiple regions, including services running on Azure. For example, mobile ordering at Starbucks Corp. was disabled for hours because of the issues affecting Azure, according to a person familiar with the matter.

Denial-of-service attacks direct internet traffic at a website in mass volume to disrupt it or shut it down. The incidents have become a persistent annoyance for financial institutions, causing intermittent downtime and forcing security staffers to repel the activity.

Reports of outages on Azure and Microsoft 365 began to spike shortly after 7 a.m. in New York and comprised hundreds of complaints at the incident’s peak, according to user reports compiled by Downdetector. Microsoft said the incident was fixed by about 5 p.m. in New York.

The issue also affected multiple Microsoft 365 services and features, Microsoft said in a post on social network X. Microsoft 365 includes common productivity applications like Outlook, Word and Excel.

Mobile ordering for Starbucks had largely been restored by about 1 p.m. in New York. The company was working to address limited interruptions that continued, a Starbucks spokesperson said.

Earlier this month, some eight million computers running on the Windows operating system crashed after the cybersecurity firm CrowdStrike Holdings, Inc. released a flawed software update. In addition, Microsoft has also been grappling with the fallout from a series of cyberattacks that prompted the US government to issue a scathing report calling for company-wide changes.

Microsoft Chief Executive Officer Satya Nadella touted progress in the company’s cybersecurity products during a conference call Tuesday after the company reported quarterly earnings. He said the company has more than 1.2 million security customers.

“We continue to prioritize security above all else,” Mr. Nadella said. — Bloomberg

Wilcon Depot profit falls 10% in Q2

By Revin Mikhael D. Ochave, Reporter

LISTED home improvement and construction supplies retailer Wilcon Depot, Inc. saw a 10% decline in net income to P770.41 million in the second quarter (Q2) from P855.77 million a year ago due to higher operating expenses related to expansion and one-off charges.

In a statement, Wilcon President and Chief Executive Officer Lorraine Belo-Cincochan attributed the profit drop in the second quarter to the one-off charge of P98 million for inventory allowances and loss due to fire.

In April, a fire hit the Wilcon depot branch in Baliwag, Bulacan.

Wilcon Depot’s latest financial statement showed net sales increased by 2.9% to P8.88 billion in the April to June period from P8.62 billion in the same period last year.

The company opened two new Wilcon Depot branches in the second quarter.

“The improved second-quarter performance was partly due to the timing of the long holidays but we also rolled out programs focused on contractors and professionals and best deals promotions to increase turnover,” Ms. Belo-Cincochan said.

Operating expenses, including lease-related interest, rose by 10.2% to P2.61 billion due to expansion-related expenses.

For the first half, Wilcon said its net income fell by 16.9% to P1.51 billion from P1.82 billion last year.

In January to June, net sales rose by 0.2% to P17.18 billion due to the sales from five new stores. Same-store sales in the first half fell by 4.6%.

Wilcon Depot branches saw a 1% decline in net sales to P16.47 billion, while smaller Do-It-Wilcon format stores recorded a 39.1% rise in sales to P488 million. Project sales to institutional accounts increased by 41.5% to P227 million.

Including lease-related interest, operating expenses rose by 8.6% to P5.08 billion.

“We are looking forward to a better second half as we continue to push for higher sales while realigning resources deployed with the current market demand,” Ms. Belo-Cincochan said.

She said the company is planning to open more stores to reach its 100-store target by end-2024.

As of end-June, Wilcon had 95 branches.

Wilcon shares fell by 2.23% or 40 centavos to P17.50 each on Wednesday.