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Twitter begins testing ‘Shops’ feature to grow e-commerce

IMAGE VIA BLOG.TWITTER.COM

Twitter Inc. will experiment with allowing companies to showcase up to 50 products for sale on their profiles, the company said on Wednesday, part of an effort to gain a piece of the $45 billion US market for so-called social commerce. 

Facebook and Instagram, which are owned by Meta Platforms Inc., have been leaders in social commerce, enabling merchants to set up virtual shops and sell products. 

The beta test for Twitter Shops will be available for select business in the United States and will be visible to people using the Twitter iPhone app, the company said. 

US wireless carrier Verizon, one of the test partners, featured iPhone cases and wireless chargers in its Twitter shop on Wednesday. 

After viewing the product on Twitter, users are redirected to the merchant’s website for checkout. 

The experiment expands on a previous feature Twitter began testing last year allowing brands to showcase up to five products at the top of their Twitter profiles. 

The San Francisco-based company is also experimenting with live-streamed shopping, which lets people purchase clothing, accessories and other items while watching live videos from the brand about the products. — Sheila Dang/Reuters

Positive outlook for the Philippines at the Citigold Annual Client Event

Citi Philippines CEO Aftab Ahmed

Fund managers are bullish about the prospects of the Philippines at the 2022 Citigold Annual Chinese New Year Market Outlook Webinar hosted by Citi.

The virtual event was hosted by Citicorp Financial Services and Insurance Brokerage Philippines Inc. (CFSI) President Ramon Melchor Tejero, with Citi Philippines CEO Aftab Ahmed welcoming the around 600 clients in attendance.

A brief client survey was conducted by Tejero at the start of the event. In the survey, 50 percent of respondents said they are invested in equities when asked of their current wealth portfolio bias. When asked two years into the pandemic how their investment appetite has changed, 49 percent said they are invested in income-generating assets (like dividend paying investment funds) other than fixed income securities or bonds. Finally, 56 percent view the upcoming presidential elections as the biggest concern in the current investment landscape.

Aftab kicked off the evening on a very positive note, “The pandemic has posed challenges for the past two years and while it has taken a toll on business and economic activity, the economy as well as many businesses have remained resilient. This is substantiated by the fact that the macroeconomic indicators for the country have remained strong and the country’s ratings have remained unchanged. OFW remittances continue to support spending by consumers and the BPO sector is expected to continue growing. We are highly confident that the economy will continue to move on to an even stronger footing this year and that business activity will continue to increase.”

He also thanked Citigold clients for their continued support, “We would like to assure you that we will remain highly focused on delivering relevant financial solutions to address your banking needs and wealth management priorities.”

The event’s featured speakers echoed the positive sentiment.

BPI Investment Management Inc. president and chief investment officer Roberto Martin Enrile said in the equities market, the Philippine Stock Exchange index (PSEi) is seen hitting 8,600 this year, driven by the 27 percent growth in the sector weighted earnings on top of the trending 38 to 39 percent earnings per share (EPS) growth seen in 2021

The forecast was formulated late last year prior to the recent resurgence of COVID-19 infections due to the more contagious Omicron variant.

Leading the pack, Enrile explained, is the property sector with a more than 40 percent growth as mobility increases and demand for office space resumes, followed by conglomerates and banks due to impending rate hikes as well as better net interest margins.

Christopher Wong, client portfolio strategist for Southeast Asia at Fidelity International, said inflation has been getting investors’ attention in the past couple of months as the global economy continues to battle the spread of the Omicron variant.

Wong added that inflation has risen quite sharply over the last few quarters due to supply chain disruptions which are likely to normalize over the short term as well as rising wages, increasing housing costs and prices especially in the US, and climate change policies.

For his part, BlackRock director and product strategist Fred Wood said that the Omicron variant could be the start of the end of the COVID pandemic as high transmission rate drive population immunity but also with lower severity.

Wood said healthcare stocks would continue to do well as the number of people over the age of 80 is seen to increase to 290 million by 2050 from the current 140 million. On top of the healthcare sector, Wood is also positive on the sustainable energy theme particularly in the areas of clean energy, energy efficiency, and clean transportation.

Economists and analysts have penned a rosy outlook for the Philippines as it continues to recover from the impact of the global health crisis by accelerate the rollout of COVID-19 vaccines leading to the further reopening of the economy.

 

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ACG is geared to helping CEOs and business owners through the Executive Tax Management Program

In celebration of the Tax Awareness Month, the Asian Consulting Group (ACG) is once again launching the Executive Tax Management Program (ETMP), an exclusive program for CEOs, founders, and business owners, which aims to equip them with business strategy and skills in managing their taxes and consequently, in preparing for the annual tax audit conducted by the Bureau of Internal Revenue (BIR). This is a good investment opportunity to save millions of pesos from unnecessary tax assessments, penalties, interest, and compromises.

ETMP offers 3 executive sessions with our tax experts led by the Philippine Tax Whiz.

The price comes with a great deal of experience and takeaways but we don’t stop there. The package comes with an Executive Tax Briefing, one-on-one consultation with the ACG’s expert tax advisors, and Chairman and CEO, Mon Abrea.

To avail of the special discounted price, kindly use the promo code: BW2022

End your misery brought by tax problems, scan the QR code or register through this link: https://tinyurl.com/mv5pxkrk.

Executive Tax Management Program is supported by our media partners: ABS-CBN Books, Start-Up Village, Project Match, The New Channel, and BusinessWorld. For questions and other concerns, feel free to email us at consult@acg.ph or contact 0917-627-8805.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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BSP seen to raise rates before midyear

SEAN YORO/UNSPLASH

By Jenina P. Ibañez, Senior Reporter

THE PHILIPPINE central bank may start raising its benchmark interest rates before mid-2022 to quell inflation risks caused by the Russia-Ukraine crisis, analysts said.

After easing to 3% in February, inflation in the Philippines could be affected by rising oil prices and natural disasters like typhoons, CLSA Senior Economist Anthony Nafte said at a briefing on Wednesday.

“Inflation is very volatile in the Philippines. I’m expecting a spike over the coming months to anywhere between 5.5% and 6%. That’s doubling the current inflation at 3%,” he said.

“Among emerging ASEAN (Association of Southeast Asian Nations) economies, the Philippines will be the highest risk of raising interest rates before the middle of the year.”

Mr. Nafte expects a 25-basis-point (bp) increase before mid-2022, and then another 50-bp hike in the second half of the year.

The Philippine economy would likely be “collateral damage” to the Russia-Ukraine crisis, raising prices in several sectors and pushing up inflation, Finance Secretary Carlos G. Dominguez III said on Monday evening.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno earlier said the war between Russia and Ukraine and its impact on international oil prices would continue to spill over to local costs. This could cause inflation to again exceed the central bank’s target of 2% to 4% this year, he said.

Mr. Diokno previously said the BSP would remain accommodative and wait for four to six straight quarters of economic growth before considering a rate hike. The central bank, however, said it was ready to act in case there is a need to respond to second-round effects of inflation.

Central banks in Southeast Asia have not yet raised rates, although Singapore has started tightening its monetary policy through its exchange rate settings.

Mr. Nafte said the Philippines is still expected to be an economic outperformer in ASEAN because it is a domestically driven economy, making it less vulnerable to export disruptions.

“We’re looking for a consumption spike in the second quarter. Traditionally, there’s this huge amount of pre-election spending,” he said, referring to the campaign season before the May 9 elections.

Declining coronavirus cases and improving vaccinations are also driving more mobility, Mr. Nafte added.

While there are investment uncertainties due to the upcoming elections, he said the economic recovery would be boosted if the next administration continues the government’s flagship infrastructure program.

Emerging markets like the Philippines could also relatively perform well amid the crisis because it is less vulnerable to liquidity shocks, Manulife Investment Management said in a note.

“It’s also likely that global export momentum slows somewhat, and so those economies less reliant on foreign demand may enjoy a mild relative advantage.”

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa expects the central bank to consider hiking rates by the second quarter as inflation accelerates.

Inflation would likely come in at 5.2%, breaching the central bank’s target as early as the second quarter, due to the depreciating peso and higher energy prices, he said via Viber.

“Despite dovish undertones from (Mr.) Diokno, BSP may be backed into a corner by May with soaring commodity prices and a weaker currency,” he said.

House Ways and Means Chairperson and Albay Rep. Jose Maria Clemente S. Salceda said the continued rise of pump prices could push inflation higher.

“This could drive overall inflation to as high as 5.2 to 5.4% by June, considering added pressures on bread (Russia and Ukraine are among the world’s largest producers of wheat), typical power demand surges during the summer months, and second-round effects of oil prices on transport costs, electricity, food (especially fish), and other basic commodities,” he said in a statement.

Higher interest rates are needed before the middle of the year to manage inflation if petroleum prices continue to surge, University of Asia and the Pacific Senior Economist Cid L. Terosa said

“I’m less optimistic that the pace of the rise in prices of petroleum products this month will slow down drastically,” he said in an e-mail. “If prices fall, the pace would be slower than the speed it has risen for the past few weeks. I believe inflationary risks will intensify.”

Local gasoline, diesel and kerosene prices rose for the 10th straight week on Tuesday by P3.60, P5.85, and P4.10 per liter, respectively. World oil prices hit multi-year highs in the past few days due to supply concerns.

‘MOST VULNERABLE’
S&P Global Ratings on Wednesday warned central banks in the region should deal with inflation risks from the Russia-Ukraine crisis, alongside the impact of the looming rate hikes by the US Federal Reserve.

“Higher consumer price index inflation would strain monetary policy in India, Korea, the Philippines, Singapore, and New Zealand, where CPI (consumer price index) inflation is preoccupying central banks,” it said in a note.

S&P said the Philippines is one of the Asia-Pacific economies that is most vulnerable to the oil price spike triggered by Russia’s invasion of Ukraine.

The debt watcher warned that the war’s impact on prices and financial markets could hit growth prospects in the region, as consumer and business confidence is dampened.

“For the many economies in Asia-Pacific that are net energy importers, higher energy prices can trigger a terms-of-trade shock,” S&P said.

“This would hit current account balances and real domestic consumption and investment. This dynamics would be most keenly felt by the largest net energy importers (relative to gross domestic product): India, the Philippines, Korea, Taiwan, and Thailand,” it added.

S&P also said substantially higher energy prices and volatility could weaken currencies and asset markets in Asia-Pacific countries.

“This pressure will be strongest where higher energy prices pressure inflation targets — such as India, the Philippines, Korea, and Thailand. Or it could cause sizable current account deficits — in India, the Philippines, and Thailand,” according to the report.

The peso closed at P52.23 on Wednesday, the third straight day it finished at a P52-per-dollar level, amid safe-haven demand for the greenback.

In December, S&P said it expected the Philippine economy to grow by 7.4% in 2022, which is well within the 7-9% target set by economic managers. — with Luz Wendy T. Noble

Manufacturing growth slows down in January

REUTERS

By Ana Olivia A. Tirona, Researcher

FACTORY OUTPUT GROWTH slowed for a second straight month in January, amid the reimposition of tighter mobility curbs due to the Omicron-driven surge in coronavirus cases.

Preliminary data from the Philippine Statistics Authority’s (PSA) Monthly Integrated Survey of Selected Industries (MISSI) showed manufacturing, as measured by the volume of production index (VoPI) grew by 16.5% year on year in January.

This was slower than December’s revised 21.3% growth but a turnaround from the 14.5% contraction recorded in January 2021.

Philippine manufacturing slows down in January (2022)

This was the second straight month the VoPI recorded slower growth. It also marked the 10th consecutive month that factory output posted a positive reading.

“This slowdown is mainly due to the Omicron surge last January when the government declared more restrictions and dampening the momentum of manufacturing growth in December,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail.

Metro Manila and other areas of the country were placed under a stricter Alert Level 3 in January, as the more contagious Omicron variant pushed daily infections to record levels.

“Manufacturing is leaning towards recovery despite a slower growth, compared with January 2021,” Federation of Philippine Industries (FPI) Chairman Jesus L. Arranza said in a Viber call. “But due to the Omicron variant, which spreads faster than previous variants, it led to the surge in cases.”

Sixteen of 22 industry divisions posted VoPI growth in January, led by tobacco products, which rose by 88.4% annually from a 14.5% contraction in December. This was followed by wood, bamboo, cane, rattan articles, and related products, which grew by 86.8%; and basic pharmaceutical products and pharmaceutical preparations, which was up by 47.8%.

Meanwhile, bigger declines were recorded for the manufacture of wearing apparel (-24.2% from -0.4%), followed by leather and related products, including footwear (-6.3% from 0.5%); and chemical and chemical products (-2.3% from 31.5%).

Market watchers expected this slowdown in January as it was signaled by the manufacturing purchasing managers’ index (PMI) data for that month, Mr. Asuncion said.

The country’s manufacturing PMI ended four consecutive months of growth after registering a score of 50 in January, which signified no change in manufacturing conditions from the previous month. The 50 reading separates manufacturing expansion from contraction.

The capacity utilization — the extent to which industry resources are used in producing goods — averaged 67.9% in January, faster than the revised 67.4% in the previous month. Of the 22 sectors, 20 averaged a capacity use rate of at least 50%.

Both analysts expect a steady recovery for manufacturing in February and March as most parts of the country shifted to a more relaxed Alert Level 1. However, they warned about the impact of Russia’s invasion of Ukraine, especially the surge in global oil prices.

The capital region and surrounding areas were downgraded to Alert Level 2 in February, and to the most relaxed Alert Level 1 starting March.

“The risks brought about by the uncertainties due to the Ukraine-Russia conflict may rear its ugly head and we may see a slight slowdown in manufacturing demand growth,” Mr. Asuncion said.

“I think manufacturing will post a steady growth in the coming month (February) as occupancy is nearing 100%,” Mr. Arranza said.

“Looking further, I don’t think the spike in oil and fuel prices will have a huge effect on manufacturing as it’s more on the logistics side, but pacing might become slower,” he added.

Banks miss 2021 lending quota for agri and agrarian reform sectors

PHOTO BY CINDY S. REYES, DEPARTMENT OF AGRICULTURE - PHILIPPINE RICE RESEARCH INSTITUTE

PHILIPPINE BANKS failed to comply with the minimum required lending for the agriculture and agrarian reform (agri-agra) sectors in 2021, according to the central bank.

Lenders disbursed loans worth P851.76 billion as of end-December to these sectors, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

This is below the minimum required credit allocation of P1.997 trillion against their total loanable funds worth P7.992 trillion.

Under Republic Act No. 10000 or the Agri-Agra Reform Credit Act of 2009, banks must allocate 10% of their total loanable funds for the agrarian reform sector and 15% for agriculture.

Credit extended to the agriculture sector reached P776.436 billion in 2021, equivalent to only 9.71% of their total loanable funds.

Big, thrift and rural banks financed loans to the agriculture sector amounting to P740.281 billion, P18.141 billion, and P18.014 billion, respectively.

On the other hand, lending to the agrarian reform sector stood at P75.319 billion, or 0.94% of their total loanable funds.

Credit extended by big, thrift, and rural banks hit P61.584 billion, P3.194 billion, and P10.541 billion, respectively, — all below the 10% minimum requirement.

The BSP hopes that Congress, which is on a break for the elections, will prioritize changes to the Agri-Agra law.

A Bicameral Conference Committee will still need to reconcile any conflicting provisions of the measures approved by the House of Representatives and Senate.

Once signed into law, the amendments will widen the range of credit counted as part of the quota to include the larger production chain process in the agriculture sector.

MSME LOANS
Banks also failed to meet the quota for small business loans required by law, a separate BSP data showed.

Loans extended by the Philippine banking industry amounted to P463.134 billion, equivalent to 5.41% of their total loan portfolio of P8.57 trillion.

This is lower than the 10% required allocation for small businesses under Republic Act No. 6977. The law mandates lenders to allocate 8% and 2% of their portfolios to micro and small enterprises (MSEs) and medium-sized enterprises, respectively.

Year on year, the amount of loans to small businesses increased by 6.3%.

MSE loans extended by banks amounted to P178.143 billion, which is only 2.08% of their total loan portfolio and much lower than the 8% minimum requirement for the sector.

On the other hand, credit to medium enterprises stood at P284.991 billion, equivalent to 3.33% of their portfolio and fulfilling the 2% quota.

Banks have long opted to incur penalties for noncompliance instead of taking on the risks associated with lending to small businesses.

To encourage lending to small businesses, the BSP in 2020 allowed banks to count MSME loans as alternative reserve compliance. These borrowings were also given reduced credit risk weight. — Luz Wendy T. Noble

MPIC sets capex at P136B; power group corners P57B

By Arjay L. Balinbin, Senior Reporter

PANGILINAN group’s listed tollways and infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) has pegged its capital expenditures (capex) for this year at around P136 billion, up from last year’s P78 billion.

“For the group-wide capex, it’s about P136 billion — the biggest obviously will be coming from the power group, and that’s about P57 billion,” MPIC Chief Financial Officer and Chief Sustainability Officer June Cheryl A. Cabal-Revilla said during a virtual briefing on Wednesday.

Metro Pacific Tollways Corp.’s (MPTC) capex for the year is estimated to be P32 billion, while Maynilad Water Services, Inc.’s budget is about P12-14 billion, she added.

Meanwhile, Light Rail Manila Corp., operator of the Light Rail Transit Line 1, will have about P6 billion.

Including PLDT, Inc. and other non-MPIC companies, last year’s capex “would be about P169 billon,” MPIC Chairman Manuel V. Pangilinan said.

For 2022, Ms. Cabal-Revilla said the group’s capex — including PLDT group’s P75 billion, Philex Mining Corp.’s P1.5 billion, and PXP Energy Corp.’s P2 billion — would be “about P215 billion.”

As for the group’s core income guidance for the year, she said: “We will probably grow by a single-digit on the high side or by a double-digit but on the low side.”

She said the group has yet to “rerun its numbers” to account for the impact of the conflict between Russia and Ukraine on its businesses.

The Russia-Ukraine conflict continues to push fuel prices upwards, Mr. Pangilinan noted.

He said rising fuel prices could affect the traffic volume on the group’s tollways “because it’s [now] more expensive to use cars.”

“Philex Mining will be a beneficiary because metal prices have been as well impacted by overall geopolitical situations, principally in Ukraine,” he added.

At the same time, he noted that the situation would have “very little impact” on the group’s water business.

“On telco, [the impact is] not much, because most of our revenues are driven by domestic demand,” he also said.

MPTC expects to open in April the Cebu-Cordova Link Expressway and complete within the year the first phase of the North Luzon Expressway Connector project.

Ms. Cabal-Revilla said the group has “plans of doing an initial public offering” by “early next year.”

“We do have other businesses that are for taking out to market, our hospital group and Maynilad. I think the most immediate that we can put out to market is the hospital group (Metro Pacific Hospitals)… because they are also trying to acquire more hospitals to expand our footprint,” she added.

MPIC’s core net income for 2021 increased by 20% to P12.3 billion from P10.2 billion a year earlier.

“This substantial improvement from the 13% growth in the first half of the year was largely driven by improved traffic on the group’s toll roads and higher volume of electricity sold by Manila Electric Co.,” the listed company said in a statement.

Net Income attributable to owners of the parent company went up by 112% to P10.1 billion last year from P4.8 billion in 2020.

The group’s core net income for the fourth quarter grew by 14% to P2.8 billion compared with the same period in 2020.

“This acceleration of growth reflected an improvement in performance notwithstanding the continued imposition of varying levels of quarantine across the country to contain the coronavirus pandemic and was partially augmented by the impact of the Corporate Recovery and Tax Incentives for Enterprises Law, which lowered corporate income tax rates from 30% to 25%,” MPIC said.

MPIC is one of three key Philippine units of First Pacific, the others being Philex Mining and PLDT.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

MPIC shares closed 0.81% lower at P3.69 apiece on Wednesday.

Megaworld profit jumps 36% on strong sales, rentals

MEGAWORLD Corp. reported a 36% rise in net income attributable to equity holders to P13.4 billion due to strong real estate sales, office rentals, and hotel revenues, the real estate developer said in a disclosure on Wednesday.

“There has been a huge demand for titled lots, from both our residential and commercial offerings last year. We can see this trend to continue even this year,” Megaworld Chief Strategy Officer Kevin L. Tan said.

After-tax net income grew by 36% to P14.4 billion in 2021 from P10.6 billion in 2020.

“In 2021, we shifted gears from pandemic management to restarting our growth trajectory, and our initiatives on this front have begun to bear fruit. As our numbers have shown, all our business segments registered significant improvements, even as we continue to provide assistance to ensure the recovery of our various stakeholders,” Mr. Tan added.

Revenues grew by 17% to P50.8 billion from P43.5 billion year on year. In the fourth quarter, revenues jumped by 37% to P13.9 billion from P10.1 billion.

Of Megaworld’s core businesses, real estate sales increased by 25% to P31.1 billion in 2021 from P24.9 billion, as construction activities picked up during the year.

In 2021, the township developer launched 11 residential and commercial lot projects with a total sales value of P28 billion. This includes Maple Grove and Arden Botanical Estate in Cavite; Northwin Global City in Bulacan; Paragua Coastown in Palawan; Eastland Heights in Rizal; McKinley West in Taguig City; and Alabang West in Las Piñas City.

Megaworld Premier Offices recorded rental income at P11.1 billion as it closed around 236,000 square meters (sq.m.) of new and renewal transactions, with an office occupancy rate at 90%.

Meanwhile, Megaworld Lifestyle Malls posted P2.3 billion in rental income last year, or 10% lower than the previous year due to pandemic lockdown restrictions.

Meanwhile, hotel operations reported revenues of P1.9 billion in 2021, up by 30% from P1.5 billion previously.

“This was due to the consistent performance of the company’s in-city hotels and the opening of Kingsford Hotel in the company’s Westside City township within the Entertainment City during the second quarter of the year,” the company said.

In 2021, Megaworld also launched its real estate investment trust (REIT) company, MREIT, Inc., which made its market debut on Oct. 1.

“The REIT structure provided a very good avenue for the company to unlock previously invested capital by infusing some of its office assets into MREIT. Since then, MREIT has grown its property portfolio GLA from the initial 224,000 sq.m. to 280,000 sq.m.,” Megaworld said.

At the stock exchange on Wednesday, its shares rose by 2.65% or P0.08 to close at P3.10 apiece. — Luisa Maria Jacinta C. Jocson

MerryMart takes majority stake in Mindanao pharmacy

MERRYMART Consumer Corp. has finalized its acquisition of a majority stake in ZC Ramthel Corp. or Cecile’s Pharmacy, which is said to be the biggest pharmacy chain in Zamboanga City in Mindanao.

In a stock exchange disclosure on Wednesday, MerryMart said it executed an agreement that finalized the acquisition of a 53.125% post-investment stake of the pharmacy.

According to the company, the Cecile’s Pharmacy chain will still be managed by its current management team in cooperation with MerryMart personnel.

“There are only very few drug store chains in the Philippines that has been operational for decades and still remain to be the market leader and the top-of-mind brand in their respective market region. Cecile’s Pharmacy chain is one of that select group that stood the test of time and we believe this acquisition will add great value to the MerryMart Group’s ecosystem,” MerryMart Chairman Edgar J. Sia II said.

MerryMart disclosed that it would acquire 25,000 secondary shares and 60,000 primary shares of Cecile’s Pharmacy, equivalent to a 53.125% stake. The remaining 46.875% stake in the pharmacy chain will be owned by the Saavedra family.

Meanwhile, Mr. Sia said the company is still targeting other merger and acquisition (M&A) opportunities in the grocery and pharmacy segments.

“While the MerryMart Group continues on with its organic expansion, MerryMart will continue to keep its eyes open for M&A opportunities in both the grocery and pharmacy space that would accelerate its growth to capitalize on the continued consolidation from traditional to modern retail in the Philippines,” Mr. Sia said.

According to MerryMart, Cecile’s Pharmacy has been operating since 1964. It currently has 21 operational branches and employs 300 personnel.

“In addition to enhancing MerryMart’s trade volume in the pharmacy and prescription drug items, this transaction will bring significant improvement on cost efficiencies as MerryMart continues to strive to deliver better value to its customers and stakeholders,” MerryMart Chief Financial Officer Hannah Yulo-Luccini said.

On Wednesday, MerryMart shares at the local bourse rose 6.01% or 11 centavos to end at P1.94 apiece. — Revin Mikhael D. Ochave

Robinsons Land nets P8.5B, up 62%

ROBINSONS Land Corp. (RLC) reported a 62% jump in its consolidated net income to P8.5 billion in an “eventful” 2021 that allowed it to corner opportunities as the economy started to reopen.

Consolidated revenues last year grew 30% to P36.54 billion.

“As the economy approaches full reopening, the diversity of our portfolio, our healthy balance sheet and agile mindset put us in a strong position to capture growth opportunities towards accelerated recovery,” said RLC President and Chief Executive Officer Frederick D. Go in a press release on Wednesday.

He described 2021 “was an eventful year for RLC” during which it ”pushed boundaries to create value for our stakeholders and continued to invest in our long-term sustainability.”

Net income attributable to parent firm shareholders reached P8.06 billion last year, the company said without disclosing a comparative figure. But it said the amount translated to earnings per share of P1.55, exceeding the P1.01 of the earlier year.

In the fourth quarter alone, net income more than doubled to P2.06 billion quarter on quarter due to eased lockdown restrictions. Total revenues for the quarter grew 15% to P5.66 billion in the earlier quarter.

Of RLC’s businesses, Robinsons Malls recorded revenues of P8.25 billion in 2021, with earnings before interest, taxes, depreciation, and amortization (EBITDA) at P3.86 billion. In the fourth quarter, revenues grew 22% to P2.25 billion.

“RLC is optimistic that mall operating fundamentals will continue to rebound on the back of wide-spread vaccinations and pent-up demand,” the company said.

In 2021, Robinsons Malls opened Robinsons Place La Union, its 53rd lifestyle center, expanded Robinsons Dumaguete, and reopened the second phase of Robinsons Place Tacloban.

Meanwhile, Robinsons Offices sustained the upward trajectory of its topline results, posting a 9% increase to P6.49 billion.

“The stable growth in revenues is primarily driven by the strength of its portfolio, which consists of quality assets in strategic locations with a wide geographic dispersion and strong clientele base. EBITDA and EBIT improved by 11% and 13% year on year to end at P5.66 billion and P4.73 billion, respectively,” RLC said.

Robinsons Offices completed Cyber Omega in Pasig City and Bridgetowne Campus One in RLC’s Bridgetowne Destination Estate and Cybergate Iloilo, boosting the company’s portfolio to 688,000 square meters (sq.m.) in net leasable area.

Its hospitality business,  which mainly caters to essential business sectors and quarantine facilities, surpassed 2020 revenues by 11%, while EBITDA jumped 60% due to increased operational efficiencies. In November, Robinsons Hotels and Resorts re-opened Dusit Thani Mactan Cebu.

Revenues from Robinsons Logistics and Industrial Facilities (RLX) increased by 50% to P354 million. RLX currently has industrial facilities located in Sucat, Muntinlupa, Sierra Valley in Cainta, San Fernando and Mexico in Pampanga, and Calamba, Laguna.

In the second half of the year, capital expenditures increased, with RLC spending P24.82 billion, driven by its investments in malls, offices, hotels, industrial facilities, destination estates, and residential projects.

In 2021, RLC listed its real estate investment trust, RL Commercial REIT, Inc. (RCR) in the Philippine Stock Exchange.

At the stock exchange on Wednesday, RLC shares surged 3.47% or 66 centavos to P19.66 each. — Luisa Maria Jacinta C. Jocson

ACEN income rises 22% to P5B on strong power demand

AC Energy Corp. (ACEN) reported a consolidated attributable net income of P5.25 billion in 2021, higher by 22% than the P4.29 billion recorded a year earlier, due to stronger power demand.

In its financial report filed to the exchange on Wednesday, the Ayala group’s listed energy arm said revenues last year went up by 27% to P26.08 billion from P20.49 billion in 2020, driven by stronger generation output.

“As the Philippines and the Asia-Pacific region recover from the pandemic’s peak, the energy sector continues to experience strong demand for power. ACEN’s robust 2021 financial and operating results reflect our ability to benefit from this,” ACEN President and Chief Executive Officer Eric T. Francia said in a separate statement to the exchange.

The renewable energy (RE) company said its attributable output grew 21% to 4,633 gigawatt-hours (GWh) from 3,818 GWh in 2020 on the back of the 23% climb in generation from RE sources. International output rose 24%, while generation from Philippine assets jumped 20%.

Mr. Francia added that ACEN’s eye is set on “aggressively expanding” its RE portfolio so it can be prepared to address power woes in the county and in other regional markets “in an environmentally sound and socially responsible way.”

This year, the company has earmarked around P55.5 billion for capital expenditure (capex) investments, 68% more than last year’s budget. A huge chunk of the fund will be sourced from ACEN Finance Ltd.’s recent $400-million fixed-for-life perpetual green bond offering.

The capex budget will be used to develop new capacity in the county amid the power supply issues, while a portion will be allotted to the construction of its 521-megawatt (MW) New England solar farm in Australia and 420-MW Masaya solar farm in India.

At home, the company is building around 484 MW of wind and solar capacity. Across the region, as of November 2021, ACEN has around 3,800 MW of attributable net capacity, of which, renewable energy accounted for a share of 87% or 3,300 MW.

ACEN shares at the Philippine Stock Exchange on Wednesday inched up 15 centavos or 1.96% to close at P7.79 apiece. — Marielle C. Lucenio

Sta. Lucia Land eyes loans, more land acquisitions

STALUCIALAND.COM.PH

REAL estate developer Sta. Lucia Land, Inc. expects to further strengthen its presence in key areas of the country as it boosts its land-banking activities while looking at tapping loan and credit facilities worth P6 billion.

In a statement, the listed company said its expansion highlights its confidence in the Philippine real estate market.

“Over the last several years, Sta. Lucia Land has been aggressively expanding, announcing acquisitions in more areas including Cavite, Bulacan, Iloilo and Davao,” it said.

In February, Sta. Lucia Land disclosed to the Philippine Stock Exchange that its board of directors had approved a number of resolutions such as authorizing the company to avail of loans and credit facilities from China Banking Corp.

The loan proceeds would be used to refinance maturing loans as well as fund project developments, land acquisitions and general corporate expenses, the company said.

The board also approved resolutions authorizing the company to acquire a total of 32.34 hectares of land in Laguna and Batangas, as well as enter into joint ventures for projects in Rizal, Batangas and Cotabato with a total area of 89.04 hectares.

“These planned acquisitions and joint venture projects do not only showcase the company’s sustained expansion appetite despite the challenges posed by the pandemic, but are also seen to further cement the company’s foothold in key areas across the country,” Sta. Lucia Land said.

To date, Sta. Lucia Land and its parent firm have collectively built more than 250 projects, which covers at least 10,000 hectares across the country.

“Having been in the business of building homes for more than 50 years now, the Sta. Lucia Group continues to provide Filipinos with high quality, diversified offerings that include world-class golf courses and country clubs, resort-themed communities, townships, lake developments, condominiums and condotels, offices, and commercial spaces, among others,” Sta. Lucia Land said in the statement.

On Wednesday, shares in St. Lucia Land rose by 2.57% or seven centavos to close at P2.79 each.

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