Del Monte eyeing e-commerce and brand expansions

September 12, 2022 | 12:03 am

DEL MONTE Pacific Ltd. (DMPL) is looking to distribute its products via both conventional and digital channels, a company official said.

“The group will continue to improve and expand its offering of high-quality products, and make these more readily available to consumers through traditional and digital channels including e-commerce, and through more convenient formats,” the company said in a statement on Friday.

“We remain relentless in pursuing initiatives that will generate sustainable sales and profit while proactively dealing with cost inflation,” DMPL Managing Director and Chief Executive Officer Joselito D. Campos, Jr. said.

As part of the company’s brand expansion, DMPL’s subsidiary Del Monte Foods, Inc. (DMFI) recently acquired the intellectual property of the Kitchen Basics brand.

DMFI paid $99 million to McCormick & Company, Inc. with the purchase including $17 million of inventory with market value of $25 million to $27 million.

“The acquisition is consistent with DMFI’s overall growth strategy as it focuses on innovation, renovation and customization of its iconic brand portfolio,” the company said.

DMPL said that it had started a number of cost-optimization initiatives. In the United States, it introduced distribution center consolidation and increased use of rail instead of trucks to save on fuel cost, while it introduced tin can packaging optimization in the Philippines.

On Friday, the group reported that it incurred a net loss of $30.52 million in the first quarter from an $18.32-million profit last year after booking a one-off redemption cost.

The one-off cost is from DMFI’s redemption of 11.87% senior secured notes worth $50 million “to secure a much lower interest rate.”

Without the said one-off cost, the group’s net profit climbed by 7.2% to $19.64 million in the first quarter from the previous year.

DMPL’s fiscal year starts in the month of May with the first quarter ending in July.

The group’s sales ended lower by 1.2% in the quarter to $456.6 million versus last year as the company booked lower sales in the Philippines.

Del Monte Philippines, Inc. (DMPI) recorded a 16.9% decrease in its net profit to $19.7 in peso terms after booking higher product and distribution costs due to inflation.

Meanwhile, it achieved an overall 3.6% increase in its sales to $168.5 in peso terms driven by sales of S&W processed and fresh pineapples.

Its sales in the Philippines, which accounts for about half of DMPI’s sales, was lower by 9.7% after it registered a decline in volume across its core categories amid a high inflationary environment.

“Packaged mixed fruits and beverage sales were down as consumers shifted priorities in the face of high food prices, and are spending more on necessities and products offering improved value,” DMPL said.

“Barring unforeseen circumstances, the group expects to generate a net profit in [2]023 after one-off redemption expenses,” the company said.

DMPL closed unchanged on Friday at P14.00 apiece. — Justine Irish D. Tabile

How to build your own skincare routine

September 12, 2022 | 12:03 am

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By Zsarlene B. Chua

IN the past few years — and especially during the pandemic — skincare has been at the front and center of every beauty routine. People realized that having good skin is key to snatched makeup looks and feeling and looking great.

With all the options available today, it can be intimidating and confusing for those who are new to the skincare game and are looking to create their own routine.

As a person who has, for years, gone on her own skincare journey and tested products for a living, I’ve learned that every person’s routine can be different and the most important thing is that you find your routine not only effective but also something you enjoy doing every day.

So, if you’re new to the skincare game and are looking to build your own skincare stash, here are tips to get you started.

(I am not a licensed dermatologist or aesthetician, so please take my tips as suggestions and please do seek medical advice if you’re having skin issues.)

Ask yourself: how much time and money are you willing to spend on a routine?

A skincare routine is a commitment — a commitment that you’ll have to set aside time and money for to achieve your skincare goals. Remember that a skincare routine is done twice a day, so the first thing to consider before building your own skincare routine is to ask yourself how much time and money you can comfortably allocate for it.

This doesn’t mean that if you’re always in a rush that you won’t get a good routine or if you don’t have that big of a budget you won’t get that glowy, glass skin you want. No, this just means that you’ll have to create a routine that works for your skin, your wallet, and your time.

If you only have 15 minutes (or even five!) in the morning and at night to do skincare, that’s perfectly fine. You can stick to the very basic, yet effective products, to get you sorted out. You should never feel that you’ll have to go way beyond what you’re comfortable with because, again, skincare should be self-care and you should always enjoy doing it.

Don’t know where to start? Start by finding out your skin type

The most important thing about any good skincare routine is understanding what your skin needs and your goals are. Before buying any product, it’s important to know if that product is suitable for your skin type.

If you don’t know what your skin type is, try doing this. Wash your face with water, let it air dry, and wait for a few minutes. If your skin feels tight all over, chances are you have dry skin. If, after a few minutes, you already see a shine all over your face, you may have oily skin. If it feels tight in some places (like the cheeks) and shiny in other places (like the nose and forehead area), you may have combination skin. If your skin feels none of these and feel normal, you may have normal skin. In addition, if your skin is easily irritated, you may have sensitive skin (but please confirm this with a dermatologist).

Note that your skin type may vary because of the weather, your health, and other factors, so it’s important to always listen and re-adjust to your skin needs.

How to create a beginner skincare routine? Stick to the basics of the basics.

There’s a ton of products out there and our favorite influencers always have a new thing they’re recommending every day. It can be overwhelming and confusing. Remember that the most important thing in a newbie routine is to have a basic routine down pat.

That means using only the most basic and essential products and once you’re used to using those products every day, twice a day, that’s the time you can start experimenting and adding other products.

The basics are, for me, a good facial cleanser, a good moisturizer, and sunscreen. That’s it.

Start your day and end it with a clean face. This means using a good facial cleanser. Not only does it remove dirt and irritants, a clean face provides a good canvas that will allow other products to sink in and do their work.

If you’re looking for a good affordable cleanser, Celeteque Hydration Facial Wash (P89/60ml) and Human Heart Nature’s Nourishing Facial Wash (P84.75/50ml) are great places to start. Both are local brands that promise gentle cleansing while keeping the skin moisturized. This is perfect for those with normal, combination, and sensitive skin. If you do need something for acne, Human Heart Nature also has one product for acne defense.

Personal favorites of mine are the Senka Perfect Whip Facial Wash (P279/125g) and the Hada Labo Hydrating Face Wash (P385/100g) if you have a bigger budget. Both Senka and Hada Labo have this whipped, smooth texture that makes washing your face fun and luxurious.

Remember to stop using your facial wash if it makes your skin feel tight, burning, or itchy.

Next is a good moisturizer. Moisturizers protect the skin’s moisture barrier — this is the barrier that keeps environmental stressors like pollutants and irritants out, as well as bacteria that can make our skin look and feel bad.

All skin types need to moisturize: drier skin types can go for heavier creams while oilier types can go for water gel or lotions.

My brother, who has oily and acne-prone skin, has recently fallen in love with Fresh Skinlab’s Jeju Aloe Ice Soothing Gel Lotion (P209/300ml). This is a lightweight gel moisturizer that contains aloe leaf water that soothes the skin, and panthenol that moisturizes the skin’s barrier. Meanwhile, I am currently loving the Fresh Skinlab Tomato Glass Skin Hyaluronic Water Drop Cream (P239/80ml) because while it’s lighter, it does give me all-day moisturization. A tried-and-tested mainstay is the classic Nivea Moisturizing Creme (P345/150ml) for times when my skin needs extra moisturizing.

Like the facial wash, you’ll need to use a moisturizer day and night. What I do to save time in the morning is that I use more lightweight formulas like Fresh Skinlab to layer underneath my sunscreen and use the Nivea creme at night.

Finally, get yourself a good sunscreen to apply after your moisturizer in the mornings. This is another non-negotiable for me because the sun is the main cause of skin damage and aging. It doesn’t even matter if you’re stuck inside working or studying, you still need to put on sunscreen because you’ll still be exposed to the UV rays from your windows (even your laptop and other devices emit UV).

A common complaint I get from people who are not fans of sunscreen is that they don’t like it because it’s sticky. The fix to that is to find brands which are not, like the Sunglow by Fresh Tinted Sunscreen (P329/50ml) and the Belo Sunexpert Perfecting Shield Tinted Sunscreen (P462/50ml). These products are not only not sticky, they also layer well under makeup and can even substitute for foundation or BB cream due to their light-to-medium coverage.

If you don’t want the tint, you can also try the BIORE UV Watery Essence Cream (P495/50ml) which is also incredibly lightweight and has this water gel texture for those who don’t want heavy sunscreens.

Good sunscreens can be pricey but please do put it in your skincare routine. Your skin will thank you for it.

Now, you have a list and you want to go buy the products, but skincare can be a bit of hit-and-miss and it takes time and money to know which products work for you. So, what do you do?

Well, one thing is to try skincare sets — especially trial or travel-sized ones — like Celeteque’s Traveler’s Basics Set (P155) that contains three hydration products: facial wash, toner, and moisturizer, or Hello Glow’s All-Natural Whitening or Rejuvenating Set (P360) that contains four mini products — a cleanser, toner, cream, and sunscreen — enough for a complete routine. The All-Natural set is said to be meant for dealing with uneven skin tone and has Apple Extract, Glutathione, Arbutin, Kojic Acid, and Vitamin C to lighten and brighten skin tone, while the Rejuvenating Set is for those who want to address skin issues like acne. It has Ceramides, Hyaluronic Acid, AHAs and BHAs, among others, to help improve skin texture.

By buying a set, you already have most of the products you need and you can see if it will work for you without burning a big hole in your pocket.

Those are the products you can use to start your skincare routine. Once you’ve gotten the hang of applying these and are satisfied with what they’re doing for your skin, then you’ll be able to add or substitute other products like serums, oils, and masks to your routine.

Remember that a good skincare routine isn’t about the number of steps, it’s about choosing the products that will work for your skin, time, and budget.

Zsarlene Chua is a former BusinessWorld reporter who is now a fledgling PR girl. She’s all about skincare, makeup, and video games. None of these products recommended are the writer’s clients. These are all independently reviewed and acquired products.

Campaign underscores Seaoil’s customer service pledge

September 12, 2022 | 12:02 am

SEAOIL, the leading independent fuel company in the Philippines, reiterated its pledge to deliver excellent customer experience through its Alagang Seaoil campaign. Aside from caring for its customers via innovative products and services, delivered even during the challenging times such as at the outset of the COVID-19 pandemic, Seaoil — through the Seaoil Foundation — continues to implement relevant programs.

“As we slowly transition into a post-COVID world, we will double our efforts in fostering the Alagang Seaoil way of doing things within and outside the organization. If there’s anything the past two years have taught us, it’s that we serve our customers best when we adapt to the present realities and innovate continuously to address their needs. They can count on us to consistently deliver products and services with genuine care,” said Seaoil CEO Glenn Yu.

At the height of the pandemic, Seaoil partnered with Locq, OPC to give customers some relief over volatile fuel prices through the PriceLocq mobile app. The company said there are now over 200,000 PriceLocq app users that are able to buy and store fuel for future use before a series of price hikes. To further add convenience for its users, the RFID top-up feature was recently added in the app to enable customers with Autosweep RFID accounts to also reload through the PriceLocq app. Easytrip compatibility will be added soon, said the company.

Seaoil also recently opened its second LubeServ branch in San Fernando, Pampanga to offer change oil and preventive maintenance services to customers based in the Central Luzon area. Apart from its fuels, Seaoil also made STP additives available in its lubricant product line when it expanded its partnership with the international oil treatment brand STP last November. Three more Lubeserv branches located in Cavite and Caloocan are expected to open by the end of 2022.

More customers will have access to quality products and value-added programs as Seaoil is set to close the year with over 700 stations nationwide. The firm also recently broke ground on its Zamboanga Bulk Terminal in May this year, scheduled to open by the end of 2023. It is Seaoil’s 12^th terminal nationwide, and will serve retail and industrial customers in the Zamboanga Peninsula, and the neighboring islands of Tawi-Tawi, Jolo, and Sulu.

Award-winning actress, entrepreneur, and philanthropist Anne Curtis-Smith was recently introduced as the brand ambassador for the Alagang Seaoil campaign. “It’s such an honor to be a part of this campaign that promotes a culture of care for the Filipino community,” she commented.

Labor dearth set up Malaysia for 3^rd year of palm oil losses

September 12, 2022 | 12:02 am

Malaysia-Workers-palm oil fruits — REUTERS

KUALA LUMPUR — Malaysian palm oil planters are letting thousands of tons of fruits rot as the third year of a worker shortage has left companies unable to increase their harvesting during the peak production season.

Palm oil output in Malaysia, the world’s second-largest producer, is forecast to decline, or at best remain unchanged, from last year’s 18.1 million tons, according to planters and analysts.

Plantations across the Southeast Asian nation are facing their worst labor crisis since the industry began in 1917, with the arrival of migrant workers that are the core of the industry’s labor force at a “snail’s pace,” the Malaysian Palm Oil Association’s (MPOA) Chief Executive Joseph Tek, told Reuters, despite the lifting of coronavirus-related hiring restrictions.

A lack of skilled harvesters means companies cannot fully capitalize on the peak harvest season that spans from August to November, forgoing a boost of growth from recent rains.

“The plantation industry is no longer at the breaking point, it has been pushed beyond the breaking point,” Mr. Tek said.

Production shortfalls in Malaysia will support prices for benchmark crude palm oil futures, the most-traded vegetable oil in the world, which have lost half their value after hitting a record in March.

Travel restrictions enacted in 2020 to fight the COVID-19 pandemic left the Malaysian palm oil industry short of 120,000 foreign workers needed to maintain trees and harvest fruit bunches. After that, oil palm yields plummeted to near 40-year lows in the 2020/21 marketing year, adding to a broader global edible oil shortage triggered by the Russia-Ukraine war.

That pushed palm oil prices to record highs in March, inflating prices of foodstuffs, detergent and other palm oil-based products.

Since then, though palm oil prices have slid lower following the resumption of exports from rival Indonesia, the world’s biggest palm oil producer, and a rebound in world oilseed production, with estimates of all-time high soybean output in the US and Brazil.

Chicago soybean oil has fallen 25% since hitting its all-time peak in April.

Malaysia’s palm industry expected their labor woes to ease after the government lifted the COVID-19 freeze on recruitment in February, with the MPOA expecting the entry of 52,000 migrant workers.

However, only several hundred workers have arrived, largely because of slow government approvals and concerns over worker protections.

The MPOA estimates only 12% of approvals for migrant workers granted to companies across all industry sectors in Malaysia have successfully translated into boots on the ground.

Migrants, mainly from Indonesia and Bangladesh, make up around 80% of the workforce in Malaysian estates. Malaysia’s Ministry of Human Resources, which is responsible for approving the intake of foreign workers, did not immediately respond to Reuters queries for a comment on the labor crunch.

Messages sent to the Minister of Human Resources Saravanan Murugan were not replied to as well.

FGV Holdings, the world’s largest crude palm oil producing firm, said it has received 647 migrant workers this year and it has only filled 62% of its required workforce. The firm is optimistic it will receive 7,000 workers by the end of the year, FGV said in a stock exchange filing on Aug. 30.

However, any incoming workers will miss the crucial high crop season. As harvesting time at some plantations extends to as much as 90 days from the usual 10 to 15, producers are losing up to a quarter of their crops, the MPOA said.

It estimates opportunity losses from unrealized crop and palm products could exceed 20 billion ringgit ($4.44 billion) by the end of the year. — Reuters

Philippines slips in Human Development Index

September 12, 2022 | 12:02 am

The Philippines ranked 116th out of 191 countries, down three places from 113th previously, in the latest Human Development Index (HDI) by the United Nations Development Program. The index ranks countries based on three dimensions of human development: a long and healthy life, knowledge, and a decent standard of living. With a score of 0.699 out of 1, the Philippines was only ahead of Laos and Timor-Leste (both 140 overall), Cambodia (146), and Myanmar (149) in select East and Southeast Asian countries included in the index. The Philippines’ HDI score was also below the East Asia and the Paciﬁc’s average of 0.749 and the World’s average of 0.732.

SC affirms P8.11-million fine against production company

September 12, 2022 | 12:02 am

THE Supreme Court (SC) has upheld a fine against members of a post-production company in favor of Magsaysay Films International Corp. (Magsaysay).

In a 16-page resolution on Jan. 5 and made public on Sept. 9, the SC Second Division upheld with modification the P8.11-million fine for damages against Cinecolor Corp. (Cinecolor) with an interest of 6% for failing to correctly render its services to the local film company.

“It was incumbent upon defendants to release a good quality film after post-production. It was their legal duty. It was what they were paid to do. The outcome of the film, however, was a total disaster,” the High Court said in the ruling.

It added that the original fine issued by the Court of Appeals was a reasonable amount.

The appellate court ruled the production company acted in bad faith when it failed to refund the P8 million agreed upon for the film’s production. The court ordered the production company to pay P8.11 million in compensatory damages.

In 2004, the two firms agreed upon a schedule for a film that Magsaysay planned on releasing in time for the Manila Film Festival on the afternoon of June 22 that year.

A day before the festival, Cinecolor had not finished the final mixing of the film which caused the film’s release to be rescheduled to the evening of June 22, the SC said.

When the film was eventually premiered, the final product had faulty sound work, color editing, and other technical issues, it also noted.

Cinecolor claimed that Magsaysay did not provide them with the raw materials needed to complete the film project.

Magsaysay pointed out that the production company showed inexperience and unpreparedness when it turned over a “substandard film.”

The high tribunal noted that the unfinished film that was shown to a viewing audience also damaged the film company’s reputation, which led to P8.11 million in total damages.

“Instead of a mere reassurance, defendants (Cinecolor Corp.) should have done what they were asked and paid to do,” said the High Court. “They should have corrected what was needed to be corrected to come out with a good quality movie.” — John Victor D. Ordoñez

Burberry, cancels runway show following the death of Queen Elizabeth II

September 12, 2022 | 12:02 am

LONDON — British luxury brand Burberry said it had canceled its spring-summer 2023 runway show on Sept. 17 following the death of Queen Elizabeth II.

Burberry’s runway shows are a highlight of London fashion Week.

Belgian designer Raf Simons has also announced that his brand’s show, scheduled for Sept. 16, will be canceled in a show of respect for the Queen.

According to GQ magazine, Burberry released a statement saying: “It is with great sadness that we have learned of the passing of Her Majesty The Queen. As a mark of respect, we have taken the decision to cancel our Spring/Summer 2023 runway show due to take place on 17 September in London.” It is not known if Burberry will reschedule the show at a later time.

“As the country enters a period of official mourning, we will pause during this time of great sadness. We will take this time to respect the legacy of Her Majesty Queen Elizabeth II and her 70 years on the throne. Our thoughts are with the Royal Family and the people of the Commonwealth,” Raf Simons’ brand said in a statement according to GQ.

Meanwhile, the British Fashion Council said that London Fashion Week will go on as scheduled from Sept. 16-20. “It is an important moment for designers to show their collections at a specific moment in the fashion calendar, [and] we recognize the work that goes into this moment,” the council said in a statement according to the Financial Times.

“Therefore, shows and presentations of collections can continue, but we are asking that designers respect the mood of the nation and period of national mourning by considering the timing of their image release,” the statement said. The council did urge the designers to postpone “non-essential” events, and urged that their shops close during the funeral.

The council also suggested that shows on the day of the funeral be rescheduled.

The date of the funeral has yet to be announced. — with a report from Reuters

Treasury bills, bonds seen to fetch higher rates

September 12, 2022 | 12:02 am

RATES of government securities (GS) on offer this week could rise amid expectations of continued hawkish monetary policy from central banks here and abroad.

The Bureau of the Treasury (BTr) will offer P15 billion in Treasury bills (T-bills) on Monday, made up of P5 billion each in 91-, 182-, and 364-day debt papers.

On Tuesday, the BTr will auction off P35 billion in fresh 10-year Treasury bonds (T-bonds).

A trader expects T-bill and T-bond yields to move higher at this week’s auctions as the US Federal Reserve’s rate hike path is seen to remain aggressive.

“It will all depend on US CPI (consumer price index) data on Tuesday night,” the first trader said. “But given what we know so far, still upside bias on yields given a hawkish Fed and ECB (European Central Bank).”

The first trader expects T-bill rates to rise by 10-20 basis points (bps) from the last awarded yields and sees the fresh 10-year paper to be quoted at 6.75% to 7%.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said yields on government securities on offer this week could rise amid a weaker peso, record high outstanding national debt, hawkish signals from the Fed, and the recent conclusion of the retail Treasury bond offering that siphoned off excess liquidity from the market.

Mr. Ricafort expects T-bill yields to go up by less than 10 bps and T-bond rates to rise by as much as 20-30 bps.

Meanwhile, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the market may remain cautious as it awaits the Fed and the Bangko Sentral ng Pilipinas’ (BSP) policy decisions next week, citing the upcoming US consumer inflation data and the depreciation of the peso.

August US consumer price index data will be released on Tuesday. Consumer inflation in the US slowed to 8.5% in July from an over 40-year high of 9.1% hit in June.

Fed Chair Jerome H. Powell on Thursday said the central bank is “strongly committed” to fighting inflation and needs to continue acting strongly to bring prices down.

The Fed is scheduled to review policy on Sept. 20-21, where markets expect another aggressive hike. It has raised rates by 225 bps so far since March.

Meanwhile, the ECB last week raised benchmark interest rates by 75 bps, signaling more hikes amid expectations of rising prices.

At home, BSP Governor Felipe M. Medalla earlier said the central bank may need to respond if the Fed remains hawkish, as its spillover effects on the market, especially the peso, could affect inflation.

The BSP has hiked benchmark rates by 175 bps since May in a bid to keep rising prices in check.

The peso closed at P56.82 per dollar on Friday, gaining 36 centavos from its all-time low P57.18 finish on Thursday, Bankers Association of the Philippines data showed.

The local unit’s rebound against the greenback followed a six-day decline that saw it post new record lows for five straight sessions.

Headline inflation eased to 6.3% in August from 6.4% in July. This brought the eight-month average to 4.9%, higher than the central bank’s 2-4% target but still below its 5.4% forecast for the year.

At the secondary market on Friday, the 91-, 182-, and 364-day T-bills were quoted at 2.461%, 3.2996%, and 3.9767%, respectively, based on the PHP Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

Meanwhile, the 10-year bond was quoted at 6.6309%.

Last week, the Treasury partially awarded the T-bills it auctioned off even as bids reached P26.653 billion, above its P15-billion offer.

Broken down, the Treasury borrowed just P4.543 billion from the 91-day securities on Monday versus the P5-billion plan, even as the tenor attracted P10.923 billion in bids. The average yield on the tenor went up by 24.8 bps to 2.318% as accepted rates ranged from 1.975% to 2.4%.

The BTr likewise raised only P2.525 billion from the 182-day debt papers out of the P5-billion program, even with demand for reaching P10.629 billion. The debt paper’s average rate rose by 14.9 bps to 3.485% as the government accepted offers ranging from 3.435% to 3.5%.

Meanwhile, the government rejected all bids for 364-day securities on offer on Monday, even as tenders reached P5.101 billion. Had the BTr accepted all offers, the average rate of the tenor would have gone up by 57.4 bps to 4.356% from the 3.782% fetched for the last award.

The BTr wants to raise P200 billion from the domestic market this month, or P60 billion through T-bills and P140 billion via T-bonds.

The government borrows from local and external sources to help fund a budget deficit capped at 7.6% of gross domestic product this year. — Diego Gabriel C. Robles

Changan unveils ‘flex-citing’ campaign

September 12, 2022 | 12:01 am

CHANGAN MOTOR Philippines, Inc. (CMPI), the official distributor of Changan vehicles in the country, presents its “Flex in the City” promo. From Sept. 6 to 30, every purchase of a Changan Alsvin, new CS35 Plus, or CS75 Plus from any authorized Changan dealership or sales outlet entitles customers to choose from among “flex packages.”

Up to P65,000 in discounts can be offered with the Changan Alsvin 1.4L 5MT (with an SRP of P629,000), P70,000 off on the 1.5L 5DCT variant (P689,000), and P80,000 off on the 1.5L 5DCT Platinum variant (P739,000). A discount of P101,000 can be extended on the Changan CS35 Plus 1.4L 7DCT-Lite variant (P999,000), P120,000 off on the 1.4L DCT Hype variant (P1,149,000), P110,000 off on the 1.4L 7DCT Luxe variant (P1,169,000), and P105,000 off (P1,379,000) on the Changan CS75 Plus.

Easy down payment on the Alsvin 1.4L 5MT is at P23,830, P26,030 on the 1.5L 5DCT, and P22,030 on the 1.5L 5DCT Platinum. The CS35 Plus Lite can be had with a P32,230 down payment, the Hype at P31,230, and Luxe at P43,630. The CS75 Plus is available with P77,580 down payment.

Finally, low-amortization plans (with 50% down payment) are available on the Alsvin 1.4L 5MT (P314,500 DP plus P6,174 monthly), 1.5L 5DCT (P344,500 DP plus P6,783 monthly), and 1.5L DCT Platinum (P369,500 plus P7,193 monthly). On the CS35 Plus Lite, it’s P499,500 plus P9,843 monthly, Hype (P574,500 DP plus P11,257 monthly), and Luxe (P584,500 plus P11,654 monthly). The CS75 Plus is available for P689,500 down payment plus P14,160 monthly.

For those opting for the low down payment option, Changan offers these freebies: one-year comprehensive motorcar insurance, three-year LTO registration, chattel mortgage, and tint, floor mats, and seat covers.

For more information, visit a Changan dealer or outlet, or the “Flex in the City” mall tours (Sept. 14 to 20 at the SM Mall of Asia, and Sept. 15 to 17 at the UP Town Center). Follow ChanganPhil on Facebook, or visit www.changanphil.com.

Gas shortages hit Dutch greenhouses

September 12, 2022 | 12:01 am

Employee picks peppers at a greenhouse in Grubbenvorst — REUTERS

GRUBBENVORST, Netherlands — Greenhouse owner Pieter Wijnen would like to focus on growing vegetables, but since Russia’s invasion of Ukraine in February, his life has revolved around gas and electricity prices rather than his red and yellow bell peppers or mini cucumbers.

“In a greenhouse like this in the wintertime, you need to heat it,” he said of his 32-hectare (79 acre) facility in the southern Dutch province of Limburg, which grows 11 million kilograms of bell peppers per year, many of which end up in German supermarkets.

“When prices are going up, and it will be much more than we are used to, then we must change our plans.”

Among other measures, Mr. Wijnen is cutting the area he will keep warm at Wijnen Square Crops this winter and growing fewer, larger cucumbers — as well as selling excess electricity he generates back to the grid to hedge costs.

Greenhouses have helped make the Netherlands the world’s second largest agricultural exporter after the US. But the €8-billion industry grew up with cheap gas, and is now facing a crisis that will hasten a switch to other energy sources and could see many businesses fail.

With Russia restricting gas supplies in response to Western sanctions over its invasion of Ukraine, European prices have soared to 20 times the level of a year ago.

Industry group Glastuinbouw Nederland says up to 40% of its 3,000 members are in financial distress. That could mean less out-of-season fruit, vegetables and flowers in European supermarkets, and production shifting to warmer countries such as Spain, Morocco and Kenya.

Until recently, Dutch greenhouses used around three billion cubic meters of gas a year, or about 8% of the national total. That has been falling as renewable alternatives become available, but the scale of the decline this year is as much as sign of distress as adaptation, growers say.

According to Statistics Netherlands, the industry’s gas usage plunged 23% in the year through June. “A large number of growers are choosing to close down their business because they don’t expect any change in the short term,” said Michel van Schie of Royal HollandFlora, the cooperative that runs the world’s largest flower auction in Aalsmeer, south of Amsterdam.

Supermarkets have preemptively slashed orders for flowers by around a third in expectation of consumers spending less amid the cost of living squeeze, he added.

The Dutch greenhouse industry is deeply entwined with natural gas due to the legacy of the Groningen gas field, which was Europe’s largest for decades until production was scaled down in the 2010s due to the earthquakes it triggered.

Some larger greenhouses like Mr. Wijnen’s feature on-site co-generation plants that burn gas to create both heat and electricity — an efficient system with 2.4 gigawatts of capacity distributed nationwide, about 14% of the Dutch total.

Many greenhouses need heat more than electricity, and can sell excess power during peak demand. Some greenhouses have invested in biomass for warmth, though wood is becoming more expensive or unavailable. A few have geothermal heating. All make use of solar power for warming and plant growth — the original greenhouse effect.

“Each and every grower is unique, which makes it very hard to draw conclusions about this crisis,” said Rabobank analyst Cindy van Rijswick, adding some Dutch greenhouses with cheap gas contracts may thrive.

As Groningen production wound down, Mr. Wijnen has invested €30 million in a geothermal project and biomass plants. But ironically, his gas co-generation facilities are currently a lifeline.

“I do not need all the electricity but the market needs the expensive electricity, so we make electricity, sell it to the grid, and then the heat is sometimes quite cheap for me,” he said.

Still, Rabobank’s Van Rijswick said the current crisis was likely to reshape the industry, with the trend towards local production — which helped to boost the greenhouse sector — potentially reversing.

“It’s like we will go back in history again with Spain producing in wintertime and the northern European countries producing their own vegetables in summertime. Some people say maybe that’s the way it should be.” — Reuters

Investors mull ICTSI unit, Pampanga firm logistics venture

September 12, 2022 | 12:01 am

SHARES in Razon-led International Container Terminal Services, Inc. (ICTSI) moved sideways last week as investors assessed its subsidiary’s partnership agreement with Pampanga-based Prime Alta Holdings, Inc. to form a freight forwarding and logistics business.

Data from the Philippine Stock Exchange (PSE) showed ICTSI ranking seventh in value turnover with P816.76 million worth of 4.48 million shares having exchanged hands on the trading floor from Sept. 5 to 9.

ICTSI shares closed at P184.30 apiece on Friday, inching up 0.7% from its Sept. 2 close. For the year, the stock has fallen by 5.5%.

“ICTSI moved sideways for the week as investors digested news on its newly formed joint venture with Prime Alta Holdings, Inc. and the sharp decline in Asia-US shipping rates,” RCBC Securities, Inc. Research Analyst Inzaghi Rafael D. Cabacungan said in an e-mail.

“The shipping rates went down because of slower global trade from lower demand for goods,” he added.

In a separate e-mail, IB Gimenez Research Securities, Inc. Research Head Joylin F. Telagen said ICTSI is consolidating at this price level that closed this week at P184.30 apiece.

“Investors are on the sidelines [last] week. However, this joint venture news will fundamentally improve the company’s bottom line over the long term. But I think traders are waiting for a technical breakout before buyback,” said Ms. Telagen.

For Mr. Cabacungan, the joint venture is beneficial for the port operator.

“We’re still waiting for further disclosures to assess the impact to the stock’s earnings,” he added.

Last week, the Enrique K. Razon, Jr.-led port operator saw developments that include ICTSI’s subsidiary, Abbotsford Holdings, Inc., signing a partnership deal with Prime Alta Holdings, Inc. to put up a freight forwarding and logistics business.

The joint venture is to be named Fortune Logistics Corp., which aims “to reduce costs and improve operational efficiency associated with the processing of cargo that are intended to be used by ICTSI for its various operations in the Philippines,” as said in a disclosure to the stock exchange.

Fortune Logistics will primarily operate, engage in and carry on the business of domestic and international ocean, air and land freight forwarding and logistics.

The two companies expect regulators to issue permits and licenses within one to two months after the signing of the shareholders’ agreement for the joint venture.

The deal has an initial capitalization of P25 million, where Abbotsford will invest an initial subscription of P12.75 million or owning 51%, while Prime Alta will invest P12.25 million, owning 49%.

ICTSI said that this joint venture will distribute a percentage of its available distributable cash flow and such dividends will be paid to the shareholders pro rata based on their respective shareholding.

Based on a report published in PortCalls, the Freightos Baltic Global Index, Asia-US East Coast prices decreased by 4% to $8,688 per forty-foot equivalent unit last week and were 61% lower compared with rates last year.

“This decrease reflects falling demand for freight, both because of excess inventories among some importers as inflation reduces spending among some consumers and others shift to other types of goods and services as the pandemic recedes, and because many retailers pulled peak season orders earlier in the year to avoid delays,” Freightos said.

ICTSI reported a 42.3% increase in its attributable net income to $152.200 million in the second quarter from $106.592 million in the same period in 2021.

This brought its attributable net income in the first half of the year to $294.475 million, up by 49.7% from the $196.662 million a year ago.

Likewise, gross revenues from port operations in the second quarter grew by 19.5% to $534.642 million from $447.037 million in the same period last year.

For the first half, port operations revenue went up by 20.4%, to $1.063 billion from $882.624 billion previously.

“With ICTSI’s impressive [first-half] performance from improved volumes due to loosening of COVID-19 restrictions and additional terminals, its first half earnings already account for 63% of our full year 2022 forecasts at P25.9 billion,” Mr. Cabacungan said.

“It may surpass our forecasts,” he said. “However, it may face headwinds as a possible recession in the US may cause a slowdown in global trades.”

ICTSI has a diverse portfolio of ports all around the world such as Europe, Middle East, Africa, Asia-Pacific, and America.

Ms. Telagen sees earnings for the third quarter reaching $155.62 million while $600-million net income attributable to equity holders of the parent for the entire year.

“At this point, with possible risk of stagflation and a few days before the Fed meeting this month, I think it’s better to stay on the sidelines and wait for technical breakout,” she said.

She noted for market players to trade and invest cautiously.

“While ICTSI continues to trade sideways near its 52-week low at P168.50, immediate resistance is at P190.00 while support is at P80.00,” Mr. Cabacungan said.

Meanwhile, Ms. Telagen pegged support and resistance levels at P173.00 and P194, respectively. — Abigail Marie P. Yraola

Philippine trade year-on-year performance

September 12, 2022 | 12:01 am

The demand for locally made products contracted for the first time in over a year in July while imports eased, bringing the trade deficit widening to another record, the Philippine Statistics Authority (PSA) reported on Friday. Read the full story.