Facebook Instagram Linkedin X Youtube
Home Blog Page 14015

Jollibee capex set to double amid aggressive store expansion

JOLLIBEE Foods Corp. said it is looking to breach the 4,000-store level across all its brands in 2017, while allocating P14.7 billion in capital expenditure for the period.

The listed fast food chain plans to open 350 more stores this year, after ending May 2017 with a total of 3,555 stores across 12 brands in 17 countries. Of the total store count, 250 of those scheduled for opening will be in the Philippines while the remaining 100 will be overseas.

“Yearend we will be hitting that 4,000 level… we are still focusing on our existing markets and opening more stores in these countries,” JFC Chairman Tony Tan Caktiong told reporters after the company’s annual shareholder meeting in Pasig on Friday.

JFC has allotted more than twice its 2016 capex of P6.7 billion to finance this year’s operations. Bulk of the spending will be for store expansion and renovations at P9 billion, while the remaining P5 billion will be used for expanding its capacities.

Mr. Caktiong further said the group will be aggressive overseas, with first stores in Toronto and the Manhattan borough of New York City, following the successful opening of a store in Jacksonville, Florida last year. The company also has plans to set up shop in Australia and Guam.

In the Asia-Pacific market, the company is planning further expansion in Vietnam and China.

In China, the company targets 35 new stores with the focus on Beijing.

“We can still expand a lot (in the area)… But it can grow outside Beijing. Right now we may even go to Northern China,” Mr. Tan Caktiong said.

To accelerate operations in Vietnam, Mr. Tan Caktiong said JFC is looking to list the Superfoods Group on the Vietnamese bourse by July 2019, but has yet to determine the size of the float.

“(Proceeds) will be used primarily for the expansion because the brand is growing very fast, and the industry in Vietnam is really showing potential for growth. So it’s really for growth in Vietnam,” Mr. Tan Caktiong said, adding that the listing will help finance the construction of 300 stores over the next five years.

Superfoods is JFC’s joint venture with Viet Thai International Joint Stock Co. From 2018 to 2021, JFC is aiming to raise its stake in the venture from the current 40% to 85% in preparation for the listing.

Consolidating Superfoods into JFC will also allow the company to hike the contribution of its foreign business to overall operations. JFC’s foreign business currently accounts for 30% of its systemwide sales.

“We will probably achieve a 50% ratio (for foreign business by the time we consolidate), because we are now basically 30%,” JFC Chief Financial Officer Ysmael V. Baysa said.

Mr. Tan Caktiong added that the group is also looking at entering Japan by 2019.

JFC currently has 12 brands under its portfolio, including Jollibee, Greenwich, Red Ribbon, Chowking, Burger King, and Mang Inasal.

In the first quarter of 2017, the firm booked a net profit attributable to shareholders of P1.53 billion, up 9.65% year-on-year.

Shares in JFC fell P1.40 or 0.68% to P204 on Friday. — Arra B. Francia

Century Pacific sees international businesses driving profit

CENTURY Pacific Food, Inc. (CNPF) said margin pressures seen in the home market mean its international investments will help drive profit growth to double-digit levels this year.

CNPF President Christopher T. Po said that while the main driver of growth is still the domestic tuna business, the company is starting to see growth from international investments, particularly in China. The group consolidated Century China Group of Companies into CNPF in 2016 in order to expedite decision-making for the company.

“We will leverage on the existing equity of the Century brand in China to grow the existing business and create a channel for our products into this massive market,” Mr. Po said in his message to shareholders during the company’s annual meeting in Pasig City on Friday.

The listed firm’s China business currently covers around 30 cities with about 40 employees.

“The first order of business is to stabilize the organization… since it’s under new management we’re stabilizing it. Studies are on the way to see what products we could introduce to the China market,” Mr. Po added.

CNPF also purchased the Kamayan shrimp paste trademark for North America in 2016. This marks CNPF’s maiden venture into branded categories outside its core segments. Its latest venture was the acquisition of the license of North American pork and beans brand Hunt’s from Universal Robina Corp. in May.

“(Businesses in the) US, Middle East, because of overseas Filipinos, are starting to grow,” Mr. Po said.

To date, CNPF’s export business comprises 25% of its overall operations, spanning 58 countries including the Middle East and Southeast Asian regions. This translates to P6-7 billion in annual revenue.

Asked if the group has more acquisitions in the pipeline, Mr. Po said CNPF is open to opportunities should they arise but will not be as aggressive to focus on growing current investments.

This year, the company is planning to make P1.1 to 1.5 billion in capital expenditures. Actual spending in 2016 stood at P1.2 billion.

The executive noted that while earnings would be a “little more muted” this year, the company will still be able to deliver healthy results.

“What were tailwinds in 2016 are now headwinds in 2017. Commodity prices are higher, there’s a bit more uncertainty right now, but having said that we’re still cautiously optimistic with business prospects, but we do expect that there is margin pressure,” Mr. Po said.

Earnings of the country’s largest canned food manufacturer grew by 10% during the first quarter of 2017 to P701 million, following a 17% rise in gross revenue to P7.5 billion.

“I think Q1 2017 results where our topline still grew 17%, bottomline moderated to 10%, so I guess that sets the tone for the rest of the year,” Mr. Po said. — Arra B. Francia

Money supply grows 11.3%, bank lending up 18.7% in May

MORE FUNDS circulated in the economy in May, with money supply sustaining its double-digit growth and bank lending also growing at a similar pace, the Bangko Sentral ng Pilipinas (BSP) said on Friday.

Domestic liquidity or M3, the broadest measure of money in an economy, grew by 11.3% last month to reach P9.6 trillion from the P8.7 trillion during the same period in 2016. It was also faster than the 11.2% reading in April which amounted to P9.5 trillion.

The BSP said in a statement that sustained demand for credit remained as the principal driver of money supply growth. Month on month, liquidity increased by 1.2%.

Domestic claims during the period rose by 14.3% from a year ago, faster than the 13.8% growth seen in April due largely to sustained growth in credit to the private sector.

Growth in bank loans remains strong on account of lending to key production sectors such as real estate activities; electricity, gas, steam and airconditioning supply; manufacturing; wholesale and retail trade, repair of motor vehicles and motorcycles; and information and communication.

On the other hand, net claims on the national government rose by 8.9% during the month as the state took on more loans, the central bank said.

Meanwhile, net foreign assets (NFA) — expressed in peso terms — posted a 4.6% increase year-on-year coming from a 3.6% uptick the previous month.

“Foreign exchange inflows coming mainly from overseas Filipinos’ remittances and business process outsourcing receipts continued to be the drivers behind the increase in the BSP’s NFA position,” the BSP said.

Net foreign holdings held by local banks also expanded due to the growth in banks’ foreign assets resulting from higher loans and investments in marketable debt securities.

“The growth in M3 remains consistent with the BSP’s prevailing outlook for inflation and economic activity. Going forward, the BSP will continue to monitor domestic liquidity closely to ensure that monetary conditions remain conducive to maintaining price and financial stability,” the central bank’s statement read.

The government is targeting a 6.5-7.5% gross domestic product growth this year, which if realized would keep the Philippines as one of the fastest-growing in the world. In the first quarter, the economy grew slower than expected at 6.4%, although Socioeconomic Planning Secretary Ernesto M. Pernia had said that growth is likely to pick up during the second quarter.

BRISK LENDING

The BSP also reported yesterday that bank lending grew by 18.7% in May from a year ago, although it moderated from the 19.2% rise seen in April, according to central bank data.

Month on month, total lending rose by 1.7%.

Computed to include reverse repurchase deals entered into by the banks, total lending grew by 17.4% in May, against 16% a month prior.

“The growth in production loans was driven primarily by increased lending to the following sectors: real estate activities (17.1%); electricity, gas, steam and airconditioning supply (24.8%); manufacturing (10.9%); wholesale and retail trade, repair of motor vehicles and motorcycles (10.6%); and information and communication (36.2%),” the BSP said, noting that bank lending to other sectors also increased during the month.

Meanwhile, consumer lending increased by 23.6% in May due to the expansion in credit card loans as well as sustained growth in auto loans and salary-based general purpose loans, offsetting the contraction in other types of household loans.

Looking ahead, the BSP said it “will continue to ensure that the expansion in domestic credit and liquidity conditions proceeds in line with overall economic growth while remaining consistent with the BSP’s price and financial stability objectives.” — Imee Charlee C. Delavin

Peso claws back losses

THE PESO finished the week stronger against the greenback despite hitting fresh multi-year lows in intraday trade due to robust US economic growth.

The local currency was lifted by upbeat key Chinese economic data, traders said.

It closed at P50.47 versus the dollar on Friday, appreciating by six centavos from its P50.53-per-dollar finish on Thursday, which was the peso’s weakest level in more than a decade or since it closed at P50.65 per dollar on Sept. 1, 2006.

Despite a stronger finish, the peso opened yesterday’s session at its worst showing for the day at P50.60 per dollar while its intraday peak was seen at P50.33 against the greenback.

Dollars traded totalled $760.9 million on Friday, rising from the $564.7 million that changed hands the previous session.

One trader attributed the peso’s rebound against the dollar yesterday to a sell-off among investors and on the back of strong Chinese manufacturing data.

“In the morning the peso was at P50.60 because overnight stocks were weak, but then towards the afternoon there was a selloff due to strong selling on the local currency,” the trader said by phone on Friday.

“Chinese manufacturing data was also stronger so it bolstered the peso that’s why it went as high as P50.33 per dollar,” the trader added.

Chinese factories grew their output at their fastest pace in three months in June, foreign media reported on Friday.

The trader mentioned that the peso opened the session weaker versus the foreign currency after the US Commerce Department revised upwards the gross domestic product data (GDP) for the first quarter.

“I think we saw a lot of profit taking and some trimmed their positions when the exchange rate fell at the P50.40 to the dollar levels,” the trader said. — Janine Marie D. Soliman

Home prices edge up in first quarter — BSP

By Janine Marie D. Soliman

HOUSING PRICES saw an uptick in the first three months of the year, after more Filipinos acquired loans for homes, particularly on residential condominiums, latest data from the Bangko Sentral ng Pilipinas (BSP) showed.

Costs to acquire homes slightly rose by 1.1% in the January to March period from the comparable period a year ago, according to the central bank’s residential real estate price index (RREPI) released Friday.

The RREPI is the BSP’s tool that measures the average change in home prices across building types and locations, allowing regulators to assess overall real estate and market conditions and monitor any looming bubbles in the property sector.

A housing price index is also among the indicators of financial soundness as identified by the International Monetary Fund.

According to the BSP, seven out of 10 or 69% of real estate loans in the first quarter were made for the purchase of new housing units. Broken down, bulk or 48.4% of residential property loans accounted for condominium units, which was followed by single detached units at 43.3% and townhouses at 7.9%.

Loans granted expanded in all housing unit types versus its year-ago levels, with condominium units logging the fastest growth of 26.9%.

Meanwhile, average residential property prices in the National Capital Region (NCR) and areas outside NCR (AONCR) both picked up pace by 1.1% in the January to March period, with NCR real estate prices reverting to the positive levels from a decline in the last quarter of 2016. While average residential property prices in AONCR were steady by end-March.

“In NCR, the higher growth in prices of single detached houses and townhouses outweighed the slower increase in prices of condominium units,” the BSP stated.

In contrast, condominium units in AONCR logged a double digit expansion, which offset the slight decrease in prices of single detached houses and townhouses.

Condominiums were also reported to be the most purchased in NCR, while single detached houses were much preferred in AONCR.

Broken down, NCR comprised bulk or 44.8% of total number of residential real estate loans granted by end-March, followed by CALABARZON at 29.3%, Central Luzon at 6.7%, Central Visayas at 5.7%, Western Visayas at 5.1%, Davao region at 3.2%, and Northern Mindanao at 1.5%, amounting to a total of 96.3% in total housing loans granted by local lenders.

The BSP collects RREPI data from the mandatory reports submitted by banks, which cover the amounts and profiles of the home loans which they hand out every quarter.

TAGS: home prices, real estate

US think tank: Weapons system firmed up in Chinese structures in Spratlys

By Ian Nicolas P.Cigaral, Reporter

CHINA “remains committed to developing its power projection capabilities” in the South China Sea, a US think tank reported, as it flagged the Asian power’s installing weapons system on major reefs in the disputed waters.

The updated report (available in this link) could raise tension anew among nations with overlapping claims on the strategic waterway, including the Philippines, which recently sent its top diplomat to China at the latter’s “invitation” as both countries endeavor to rebuild ties that had been tested by their maritime dispute.

In a report dated June 29, the Asia Maritime Transparency Initiative (AMTI) of Washington’s Center for Strategic and International Studies said China continues its militarization on the Spratly Islands, a South China Sea chain, by building new military facilities.

Showing satellite images, AMTI said Beijing has constructed new missile shelters and communications facilities on Fiery Cross (or Kagitingan, as named by the Philippines), Mischief (Panganiban), and Subi (Zamora) Reefs.

The islands, which the Philippines also claims, are about 230 miles southwest of the country’s archipelago province of Palawan.

On May 19, the Philippines and China held their first bilateral consultations on the South China Sea issue — almost a year after a ruling on an arbitral case by the Philippines that China rejects.

That same day, President Rodrigo R. Duterte in a speech claimed that his Chinese counterpart Xi Jinping had warned him of war if Manila enforces the ruling and drill for oil in the sea. Both countries subsequently played down these remarks.

In his meeting with Philippine counterpart Alan Peter S. Cayetano last Thursday, June 29, Chinese Foreign Minister Wayng Yi, as quoted by Reuters, said relations between China and the Philippines are in a “golden period of fast development.”

This is in contrast to Mr. Wang’s describing those ties as being in “a dead knot” during the administration of Mr. Duterte’s predecessor, Benigno S.C. Aquino III.

Among the three maritime features, Fiery Cross remains to be the “most advanced of China’s bases,” the report said, after China installed four additional missile shelters on top of the eight already on the artificial reef.

AMTI reported in February that Mischief and Subi Reefs each have eight “hardened” shelters with retractable roofs.

On Mischief, China is expanding its communications and radar capabilities by installing a “very large” antennae array in the man-made reef, AMTI said.

Moreover, a large radome has been newly installed while another one is under work on Fiery Cross, “indicating a sizable communications or radar system,” the think tank also said.

Two more big radomes are also being assembled on Mischief while a smaller dome has been erected near the shelters of the artificial island, it added.

Philippine Defense Secretary Delfin N. Lorenzana when sought for comment: “I have not seen these new imageries and compare them with the old ones.”

For his part, Presidential Spokesperson Ernesto C. Abella told reporters in a news conference on Friday that Manila will follow Mr. Duterte’s “non-combative and non-adversarial” approach in fixing issues with China.

“We need to reiterate the fact that his approach to the situation, to regional socio geopolitics, has always been to come into a mutual understanding and dialogue in order to resolve cases like these,” Mr. Abella said.

Palace warns of NPA attacks but says ‘we don’t have details’

By Ian Nicolas P. Cigaral, Reporter

Malacañang on Friday warned the public of possible attacks by the New People’s Army (NPA) — the armed wing of the Communist Party of the Philippines (CPP).

“We also wish to forewarn the public of reported planned attacks of the NPA on people-oriented programs and infrastructure projects,” Presidential Spokesperson Ernesto C. Abella said in a press briefing in Davao City.

“We also appeal to everyone to share information with authorities on suspicious persons and activities in their communities,” Mr. Abella added.

But when sought for details on the Leftist fighters’ plot, Mr. Abella said, “We don’t have details regarding the planned attacks, except the warning. The announcement is that we should be vigilant and we should be careful about our surroundings.”

A fifth round of peace negotiations was effectively derailed after the NPA ordered intensified attacks amid President Rodrigo R. Duterte’s May 23 declaration of martial law in Mindanao in response to the Marawi crisis.

Last week, the CPP criticized the government for its series of statements “impugning” the Left’s sincerity to talk peace following sustained attacks by members of the NPA in different parts of the archipelago.

According to the military, soldiers have killed 50 “communist terrorists” and recovered high-powered firearms in separate operations outside Marawi City since the first day of the bloody siege by the Islamist militants.

The communists have been waging a “revolution” against the state since 1968 to topple a “capitalist system.” They are known for attacking state forces and extorting money from local business particularly in rural areas.

“If we work together, we can prevent these extortion-related activities,” Mr. Abella also said.

PAL announces change of terminal in Middle East flights

By Imee Charlee C. Delavin, Senior Reporter

PHILIPPINE AIRLINES (PAL) on Friday, June 30, announced changes in the arrival and departure terminal of its Middle East flights starting July.

In a statement, the flag carrier said PAL flights to and from the Middle East, except Dubai, will depart from and arrive in NAIA Terminal 1, Pasay City, from the previous Terminal 2 assignment for most of the airline’s international flights.

PAL said flights to the Middle East covered by this new terminal assignment are those heading to Jeddah, Kuwait, Dammam, Doha and Riyadh as well as flights coming from these Middle East destinations to Manila.

The Philippine carrier operates 30 flights per week to the Middle East (7x weekly to Dubai; 4x to Kuwait; 4x to Doha; 5x to Dammam; 3x to Jeddah; and 7x to Riyadh).

PAL has direct Manila-Abu Dhabi (UAE), Manila-Dubai (UAE), and Manila-Doha (Qatar) flights.

Late last month, the flag carrier announced it is suspending its Manila-Abu Dhabi flights starting July 8 as it undertakes “route assessment initiatives,” although it will continue to fly to Dubai, Doha, Jeddah, Riyadh, Kuwait and Dammam.

The flag carrier serves at least 43 international destinations, including 20 regionally within East Asia, 10 in Australasia and the Pacific, seven in the Middle East, five in continental North America and one in Europe. ##

COA flags underspending by OVP as Robredo now one year in office

By Kristine Joy V. Patag, Reporter

THE OFFICE of the Vice-President (OVP) in 2016 spent only 59.42% of its appropriated budget for financial assistance to indigent Filipinos, according to a report by the Commission on Audit (CoA).

According to its annual audit report, the OVP spent only P130,693,992.76 of P219,963,992.76 — less than two-thirds of its appropriated budget to provide assistance to indigenous peoples.

The balance of P89,269,007.24 “represents undelivered services that could have benefited more indigents/underprivileged Filipinos,” the CoA said.

Like President Rodrigo R. Duterte, Vice-President Maria Leonor G. Robredo also marks her first year in her office, where she has launched her anti-poverty advocacy including the “Angat Buhay” (Uplifting Lives) program.

‘QUITE A CONCERN’
The CoA noted that spending of financial resources “is quite a concern for national government agencies,” adding that there is a need to “look into (their) absorptive capacity.”

For its part, the Public Assistance Division (PAD) of the OVP said medical and burial assistance benefited approximately 10,892 requesters/claimants.

“Had the balance of P89,269,117.24 been utilized for medical assistance, using the maximum amount of P25,000 per request, OVP could have already assisted or sent at least 3,500 cancer patients to chemotherapy sessions or in case of the minimum P3,000 burial services, OVP could have supported additional 29,000 burials,” COA added.

However, PAD personnel said the OVP was met with obstacles in the implementation of services due to technical requirements, manpower complement, geographical and demographical limitations and transition/adjustment period.

The CoA also said cash advances amounting to P185,826.74 were not settled or liquidated within the prescribed period.

The CoA likewise noted the OVP’s delay in the submission of financial reports and documents for 2016.

‘Awesome’ to ‘dangerous’: Political leaders rate Duterte’s first year in power

POLITICAL leaders allied with and opposed to President Rodrigo R. Duterte also marked his first year in office with their respective statements on Friday.

Former president Gloria Macapagal-Arroyo in her statement said, “President Rodrigo Duterte has shown awesome leadership and resolve in the many programs that he promised to do during his presidency. In his first year, he managed to institute various bold reforms against illegal drugs and corruption.

She added: “His Build, Build, Build initiative is commendable and is a step in the right direction towards achieving inclusive growth. But more than his accomplishments in his work as president, President Duterte has achieved to inspire and unite the Filipino people towards his goal of effecting real change for the country.”

Another known supporter of Mr. Duterte, former senator Ferdinand R. Marcos, Jr. in his statement said Mr. Duterte has shown “quality of leadership” — the “one singular quality that is very clear and the reason why he is very popular.”

Mr. Marcos also said: “He has shown that leadership both in our local and foreign policies. For example, he has redirected our foreign policy and that is the reason why we have regained once again a crucial and important position in the international community to the benefit of the Philippines. It is the same with various domestic policies.”

“Only a good leader can do that and he managed to do just that,” added the former senator, who has a pending electoral protest against Vice-President Maria Leonor G. Robredo of the Liberal Party.

On the other hand, Senator Leila M. de Lima of the opposition Liberal Party (LP), for her part, recalled Mr. Duterte’s election promise to solve the drug problem in “three to six months.”

“Makalipas ang isang taon, nasaan na tayo (Where are we after one year)?” said the senator and critic of Mr. Duterte. Ms. de Lima is currently detained on what her supporters say are fabricated drug charges.

She added: “Nagresulta lang ang inyong “War on Drugs” sa pagpatay at patuloy na pagpatay ng libu-libong Pilipino—karamihan ay mga maralitang walang kalaban-laban, kabilang ang mga inosenteng bata.” (Your ‘War on Drugs’ led to the continued killing of thousands of Filipinos — many of them poor and defenseless, including innocent children.)

“May hangganan ang lahat, Ginoong Pangulo.” (There is an end to everything, Mr. President.)

For her part, Akbayan Senator and LP ally Ana Theresia Hontiveros-Baraquel said in part: “The first year of the Duterte government is a dangerous year to be a woman. It is marked by a colossal human rights crisis. It is the year of misogyny and extrajudicial killings. It is a year of national grieving.” 

She added that Mr. Duterte’s first year in office should be a “day of remembrance” for the victims of extrajudicial killings.

PSEi rallies by 0.71% on ‘window dressing’

By Victor V. Saulon, Sub-editor

The Philippine Stock Exchange index (PSEi) rose by 55.10 points or 0.71% to 7,843.16 on Friday to end the quarter with gains, validating analysts’ expectations that periodic window-dressing will boost local equities.

“Philippine markets closed on a positive note this Friday and at the end first half of the 2017 in the much anticipated window dressing session,” said Luis A. Limlingan, business development head at Regina Capital Development Corp.

The index reading at end-March was 7,311.72 and 6,840.64 on the last trading session of 2016.

The wider all-shares index also finished in the green as it rose by 29.38 points or 0.63% to close at 4,692.03.

“The reason — window-dressing,” said Miguel A. Agarao, vice-president of Philequity Management, Inc.

Four of the six sectoral indices advanced, led by holdings firms, which rose by 80.24 points or 1.03% to 7,889.12. Property stocks followed, rallying by 35.39 points or 0.99% to 3,606.79. Financials added 9.28 points or 0.48% to 1,937.94, while industrials gained 5.94 points or 0.05% to 10,963.35.

Services slipped 8.14 points or 0.48% to 1,687.64, while mining and oil stocks gave up 11.56 points or 0.09% to finish at 12,567.75.

Still, losers outnumbered gainers at 118 to 89, while 38 issues closed unchanged. Value turnover improved to P9.9 billion worth of shares, higher by 27% compared with P7.78 billion the previous trading session.

Foreign buying was strong, resulting in net purchases of P1.03 billion, more than eight times Thursday’s P118.61 million.

Mr. Limlingan said the PSEi on Friday shrugged off the performance of US equities, which fell sharply on Thursday after the slide of both the Dow and the S&P to suffer their biggest one-day decline since May.

The losses came as the technology sector resumed its downward trend, he said, overshadowing the positive news in the financial sector.

“Federal Reserve Chairwoman Janet Yellen will deliver her twice-a-year update on the economy to the House of Representatives on Wednesday, July 12, a congressional committee said. She’ll also appear before the Senate, most likely the next day. A date and time has not been announced yet, however,” he said.

Bare Necessities

By Zsarlene B. Chua

Hand in hand with the growth of budget airlines came the rise of budget accommodations which provide the bare necessities for the global traveler who values experiences more than an expensive hotel room.

Continue
1...14,01414,01514,016...14,245Page 14,015 of 14,245
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube