Max’s Group profit down 88%

May 20, 2022 | 12:04 am

MAX’S Group, Inc. reported that its first-quarter earnings fell by 88% to P42 million from P337 million amid lockdown restrictions.

“We are very excited with our first quarter results despite the January lockdown, as they gave us indication of the shape of what’s to come for Max’s Group. We have not experienced a full quarter without any lockdown restrictions since the start of the pandemic, and the coming months will give us a better picture of the full realization of the company’s business revolution over the last two years,” Max’s Group President Ariel P. Fermin said in a statement on Thursday.

System-wide sales, composed of sales generated by both company-owned and franchised stores, increased by 25% to P3.55 billion from P2.84 billion.

“Our results for the first quarter, even more markedly so in March, are an indication of strong demand for our brands and patronage of our core of core, which are available both in traditional brick-and-mortar spaces, and expanded to business-to-business and off-premise platforms,” Max’s Group Chief Executive Officer Robert Ramon F. Trota said.

Revenues likewise climbed by 18% to P2.17 billion from P1.84 billion in 2021.

“Local sales were still tempered as a result of the strict lockdown in January due to the Omicron surge, while international business continues to flourish, surpassing even pre-COVID levels,” the company said.

Among its core brands, Max’s Restaurant, Pancake House, Yellow Cab Pizza Co., and Krispy Kreme all realized an upturn and are expected to further realize gains as dine-in customers continue to return.

“As planned, our dine-in brands Max’s and Pancake House, which have been managed for profitability during the pandemic, realized significant growth towards the back-end of the quarter. We are expecting that as the market continues to open up, the recovery of these brands will be even more vibrant, giving our margins a boost,” Mr. Trota added.

Over the course of the pandemic, the company said that it pivoted its business model through remastering the fundamentals of its operations, backed up by tighter, more efficient box economics that allowed them to benefit from both higher margins and a lower break-even point.

“We also continue to expand our reach and market not only though brick-and-mortar stores but across all available channels, such as cloud kitchens, retail outlets, and e-commerce platforms. After squeezing three years of transformation into three quarters of execution, we are confident in the momentum we’ve built and are proud to see the results of the fruits of our labor,” Mr. Fermin said.

He said the group is cautiously optimistic in the “transformative possibilities” for Max’s Group for the rest of this year and the next three to five years.

“The execution of our strategy will have long-term benefits for the group as we nurtured demand from our fans, while crafting an economic model surpassing the margins of our pre-pandemic levels,” Mr. Fermin added.

As of March 2022, the company’s store network reached 14 territories, with 603 Philippine sites and 62 stores across various locations in North America, the Middle East, and Asia.

Max’s Group’s other brands include Jamba Juice, Max’s Corner Bakery, Teriyaki Boy, Dencio’s, Sizzlin’ Steak, Maple, Max’s Kabisera, Le Coeur De France, and Singkit.

At the stock exchange on Thursday, Max’s shares remained unchanged at P5.50 apiece. — Luisa Maria Jacinta C. Jocson

Nine of nine ABAP boxers in SEAG semis

May 20, 2022 | 12:03 am

ALL nine Filipino boxers who were registered in the boxing competitions in the 31^st Southeast Asian Games (SEAG) being held in Bac Ninh province in Vietnam are in the semifinal round of the competitions.

They are all assured of at least a bronze medal and if they succeed in their matches on Thursday and Friday, will advance to the gold medal round on Sunday.

The Association of Boxing Alliances in the Philippines (ABAP) fielded 10 boxers but there were only two entries in the women’s middleweight class (75 kg), so the competition in that category was canceled.

Filipina Hergie Bacyadan, who recently won gold in the Thailand Open, will not be able to suit up.

Appeals by ABAP president Ed Picson and secretary-general Marcus Manalo went unheeded as the Technical Delegate from Jordan stood pat on his decision not to allow matches in the said division.

The same situation occurred in the women’s welterweight class (69 kg) where only the host nation and Thailand had entries. The Thais also tried to appeal the decision to no avail.

In the penultimate round, Thursday are Josie Gabuco (vs. THA), Rogen Ladon (vs. THA), James Palicte (vs. Indonesia), Eumir Felix Marcial (vs. THA) and Riza Pasuit (vs VIE).

Four other Filipinos see action on Friday in their own semifinal round matches. They are Nesthy Petecio (vs. VIE), Ian Clark Bautista (vs. CAM), Marjon Pianar (vs. INA), and Irish Magno (vs. INA). Aside from Messrs. Picson and Manalo, also in the team are head coach Don Abnett, men’s head coach Ronald Chavez with Gerson Nietes, and women’s coach Mitchel Martinez.

Tom Cruise swoops into Cannes, igniting film festival with jets and star power

May 20, 2022 | 12:03 am

CANNES, France — Tom Cruise rolled into the Cannes Film Festival on Wednesday — jet planes in tow — cranking up festivities with action, star power and autograph signings on the red carpet.

Fans greeted him with whoops and hollers and the French Air Force aerobatic team Patrouille de France flew overhead, spraying the sky with colored smoke trails in red, white and blue.

Cruise was in the city to promote the long-awaited Top Gun: Maverick movie sequel, which was held back for two years because of the coronavirus pandemic. A big ticket draw, it has added considerable buzz to the world’s largest film festival as it marks a splashy return for its 75^th anniversary edition.

In a tuxedo and black bowtie, the American star worked the crowd lined up along the red carpet, signing photos and posing for selfies.

He posed with fellow actors Jennifer Connelly and Miles Teller, clapping festival director Thierry Fremaux on the back when the jets flew over head.

Cruise had arrived earlier in the day, stepping out of a black car to the chants of “Tom! Tom!”

Some fans had been camping out since breakfast.

“I was like, ‘I must see him, absolutely, one way or another!’” said Oriane Holz, 22. She held up a sign asking for tickets to the screening of the film.

Katy McNulty, 46 and Joanne Routledge, 52, had been on the road since before dawn. The pair were up at 3 a.m. and traveled from the north of England to Scotland, taking a plane from Edinburgh to Nice, and then a train to Cannes to arrive in time for Cruise’s appearance.

What were they angling for?

“A selfie with Tom because we promised them at work that’s what we’ll deliver — and they told us we wouldn’t,” said Routledge.

Stan Hamilton, an American student learning French in Cannes, said: “Me and my father watched Top Gun when I was a child. I wish he could be here with me now.” — Reuters

High Court affirms canceled tax assessment on First Gas

May 20, 2022 | 12:03 am

THE Supreme Court (SC) has affirmed the cancellation of the tax assessment on First Gas Power Corp. for the calendar year 2000 worth P37 million, and tax liabilities for 2001 worth P82.4 million.

In a ruling on Feb. 15 and made public on May 16, the High Court reiterated the Court of Tax Appeals (CTA) full court’s ruling that said the formal letter of demand and the final assessment notice were issued beyond the mandated three-year period.

The tribunal added that the assessment did not indicate the date within which the tax liabilities should have been paid by the company.

The company is a renewable energy company that operates a natural gas power plant in Batangas City.

The High Court noted that the company received the final notice and demand letter in 2004 for the 2000 tax assessment, which was clearly beyond the three-year prescriptive period provided by the country’s revenue code.

The commissioner of internal revenue, the petitioner, said that the inadvertent absence of dates should not be a fatal error that invalidates the assessment.

“Similarly, in this case, the failure to indicate the date of acceptance by petitioner in the First Waiver means that the same is defective, and therefore, the original three-year prescriptive period to assess the deficiency income tax of respondent for the taxable year 2000 was never extended,” according to a copy of the ruling written by SC Associate Justice Jhosep Y. Lopez.

The SC said that the CTA did not err in canceling the final assessment notice and formal letter of demand, all dated 2004.

“They are all invalid assessments because the period of the petitioner to issue the same for the taxable year 2000 has already been prescribed, and the assessments for the taxable year 2001 did not contain a definite due date for payment by the respondent,” it added. — John Victor D. Ordoñez

BPI sets P100-B bond program

May 20, 2022 | 12:03 am

BANK of the Philippine Islands (BPI) has approved a new P100-billion bond program to help diversify its funding sources and boost its sustainability drive.

During a regular meeting held on May 18, BPI’s board approved the issuance of up to P100 billion in notes under its new peso-denominated bond and commercial paper program.

“The objective of the program is to diversify the bank’s funding sources and support, when possible, the bank’s sustainability strategy,” the bank said in a filing with the local bourse on Thursday.

The BPI’s new fundraising program is at the same level as the one approved in 2019.

The bank’s latest P27-billion two-year bond issuance in February fell under the program approved in 2019. Proceeds from that fundraising exercise were set to be used to fund its corporate needs and for digitalization initiatives.

WEALTH MANAGEMENT
Meanwhile, BPI Head of Consumer Banking and Executive Vice- President Maria Cristina “Ginbee” L. Go said the bank is looking to launch a wealth management app by the second half of the year.

BPI customers with at least P1 million worth of transactions with the lender will have access to investment options via the app, Ms. Go said at a press briefing in Makati on Wednesday.

She added that customers have become increasingly at ease with online transactions amid the pandemic.

BPI’s net income rose by 59.6% to P8 billion in the first quarter, driven by higher interest earnings and lower loan loss provisions as asset quality improved.

The bank’s shares closed at P95.90 apiece on Thursday, down by P1.10 or 1.13%. — KBT

Laylo, Bersamina capture silver medal

May 20, 2022 | 12:02 am

THE Philippines will not be going home empty-handed in chess for the second Southeast Asian Games edition.

Grandmaster Darwin Laylo and International Master (IM) Paulo Bersamina delivered the country’s first medal in the sport after snatching a silver medal in the men’s rapid team event. The Filipinos drew with the Vietnamese, 1-1, to claim the silver with 6.0 points, or half a point behind the latter, who eventually claimed the gold with 6.5 points. Indonesia wound up with a bronze with 5.5 points.

Woman Grandmaster (WGM) Janelle Mae Frayna and Marie Antoinette San Diego added a bronze by finishing with four points in the women’s rapid team.

Indonesia and Vietnam finished with identical six points, but the former edged out the latter with a better tie-breaker to grab the mint.

The day’s effort was enough to eclipse the medal-less performance by the country in the 2019 edition in Subic. IM Jan Emmanuel Garcia actually struck gold in the online event, but it was just a demo sport and did not officially count in the medal tally. — Joey Villar

Cisco study finds 92% in Philippines prefer hybrid work arrangements

May 20, 2022 | 12:02 am

lockdown-WFH-computer-laptop — STOCK PHOTO | Image by Yasmina H from Unsplash

TECHNOLOGY company Cisco Systems, Inc. said its research has indicated a 92% preference for hybrid work in the Philippines, saying that technology has established itself as an enabler of alternative work configurations, though it called for such arrangements to be supported by “end-to-end security.”

“Ninety-two percent of Filipino respondents are happier working from anywhere,” Cisco said in a statement, the results of a survey it conducted.

“Technology is a key enabler of growth in the hybrid workplace, and it needs to be underpinned by end-to-end integrated security. Organizations should prioritize a robust security posture that underpins every digitalization effort and ensure that cybersecurity is at the core of their technology architecture,” it added.

The company surveyed 28,000 employees in 27 countries, which included more than 1,050 respondents from the Philippines. Seventy-nine percent of Filipino respondents reported that they saw an improvement in the quality of their work in a hybrid work arrangement.

Also, 75% of the respondents from the Philippines believed that their productivity was enhanced, while 84% said their role can now be performed “just as successfully remotely as in the office.”

However, only 29% of them said their organizations are “very prepared” for hybrid work arrangements.

Most of the Filipino respondents said that companies should seriously consider fully adopting the hybrid setup, which they said has helped improve their overall wellbeing.

Cisco noted that nine in 10 of the Filipino respondents said their financial wellbeing improved, “with their average savings reaching over $6,552 (P344,046) a year.”

“A sizeable 90% ranked savings on fuel and/or commuting among their top three areas for savings, followed by decreased spending on food and entertainment at 76%,” the company added.

Cisco Philippines Managing Director Zaza S. Nicart said hybrid work is more than just a policy to facilitate a safe return to the office.

“Leaders need to rethink how to cultivate an inclusive culture. An environment where the experience, engagement and well-being of employees are at the centre, and where networking and security infrastructure is modernized and integrated to provide a seamless, secure, and inclusive employee experience,” she noted.

Cisco Senior Director for People & Communities Anupam Trehan said: “Trust has become a core tenet in our hybrid work normal, alongside flexibility, and empathetic leadership.”

“Our latest research indicates that more needs to be done to fully integrate hybrid work arrangements for employees, especially when it comes to building an inclusive culture powered by efficient technology infrastructure in this new world of working that employees clearly prefer. Leaders and companies need to commit to actions that go a long way to retain their people — listening, building trust, and leading with empathy, flexibility, and fairness.” — Arjay L. Balinbin

Michelangelo ink drawing fetches €23 million in Paris sale

May 20, 2022 | 12:02 am

MICHELANGELO BUONARROTI — An ink drawing of a nude man by Michelangelo — CHRISTIES.COM

An ink drawing of a nude man by Michelangelo — CHRISTIES.COM

PARIS — An ink drawing of a nude man by Michelangelo sold for more than €23 million ($24.17 million) at auction in Paris on Wednesday, auction house Christie’s said.

The work had been designated a French national treasure, which barred it from being exported from the country for 30 months. But the French government recently removed the designation, allowing the drawing to be offered without restriction to collectors anywhere in the world.

The drawing, A nude man (after Masaccio) and two figures behind him, is thought to be one of Michelangelo’s early works, dating back to the late 15^th century.

The drawing, one of the few works of the Italian artist in private hands, was sold in 1907 in Paris and billed as a work of the school of Michelangelo. It was largely forgotten until 2019, when a Christie’s specialist recognized it as one of Michelangelo’s works.

The hammer came down at a price of €23,162,000 euros. — Reuters

Cebu Pacific to resume int’l flights from Cebu hub starting with Seoul flights

May 20, 2022 | 12:02 am

BUDGET carrier Cebu Pacific (CEB) announced on Thursday the resumption of its international flights from Mactan Cebu International Airport in Cebu, starting with flights to South Korea in July.

Following the reopening of South Korea to visitors, the airline’s Cebu hub will resume international service to South Korea as its first destination hub, Cebu Pacific said in an e-mailed statement.

“On July 3, CEB intends to operate twice weekly flights from Cebu to Seoul (Incheon), every Thursday and Sunday. Flight 5J 128 is estimated to depart the Mactan Cebu International Airport at 12:25 p.m., and is set to arrive at Seoul International Airport at 6:10 p.m. Its return flight, 5J 129, is scheduled to leave Seoul at 6:55 p.m., and will arrive in Cebu at 10:50 p.m.,” the airline added.

It noted that its passengers in the Visayas and Mindanao have been looking forward to traveling abroad again.

“We hope to expand our international network more in the coming months as we’ve already stabilized operating over 100% of our pre-pandemic domestic capacity,” it said.

The airline recently reported that in the first quarter of 2022, it flew 16,521 flights, 128% higher versus last year while passenger count also improved by 272% to 2.05 million.

“Cargo operations sustained its growth, as cargo rose 36% to 34.2M kgs from last year,” it said in an e-mailed statement.

The airline’s listed operator, Cebu Air, Inc., saw its revenues for the period jump by 148% to P6.71 billion from P2.71 billion generated in the same period in 2021.

Its net loss for the period widened to P7.61 billion from a loss of P7.30 billion in the same period a year earlier. This was mainly due to forex translation of dollar-denominated loans and unrealized mark-to-market losses from the derivative value of its convertible bonds, the budget carrier said.

“For the rest of 2022, CEB sees a better business outlook driven by domestic recovery and reopenings of international destinations. However, it remains cautious of the risks presented by increasing jet fuel prices and interest rates and depreciation of the Philippine peso versus US dollar. It will continue to invest in the modernization of its fleet and will remain committed to providing affordable and accessible air transport services for all,” the airline said. — Arjay L. Balinbin

BSP proposes guidelines for sustainable investing

May 20, 2022 | 12:02 am

THE BANGKO SENTRAL ng Pilipinas (BSP) is proposing guidelines for banks’ integration of sustainability principles in their investment activities.

“These guidelines are being issued to set expectations on the prudent conduct of investment activities and the minimum practices that a BSP-supervised financial institutions should establish for the management and control of risks associated with investments,” according to the draft circular posted by the central bank on Thursday.

Under the proposed rules, the central bank recommended strategies to help banks assess the sustainability of their prospective investments.

Among these methods is integration, or for banks to explicitly include environmental and social (E&S) risks in their investment analysis for better risk management and improving returns.

Under the screening strategy, banks may actively avoid investing in securities that belong to companies they believe “counter moral values… or standards and norms.” This means not investing in firms that are part of gambling or military weapons industries or entities that don’t respect human rights and environmental protection.

Conversely, via screening, banks may prefer companies that are known for relatively better E&S risks compared with their peers. By screening, lenders may also opt for “impact investing” with the goal to “generate and measure social and environmental benefits alongside a financial return.”

The BSP will also allow control mechanisms to help financial institutions prevent falling into the “greenwashing” trap when investing.

“Greenwashing refers to the deceptive marketing used to persuade the public that an organization’s products, aims, and policies are environmentally friendly,” the BSP said.

Under the proposed guidelines, a bank’s board of directors is responsible for ensuring that sustainability principles are integrated into their investment activities.

Stakeholders are given until June 1 to give their feedback on the proposed circular.

The central bank launched the second phase of its sustainable finance framework in November that directed banks to monitor environmental and social risks in their credit exposures and business operations. — Luz Wendy T. Noble

NU sweeps first-round of UAAP women’s volleyball

May 20, 2022 | 12:01 am

russel-palma05192022_NUvsUP10 — NU Lady Bulldogs beat UP Maroons to sweep UAAP Women’s Volleyball. — PHILPPINE STAR/ RUSSEL PALMA

By John Bryan Ulanday

UNSTOPPABLE National University (NU) bullied its way to a first-round sweep for its all-time best start, running over University of the Philippines (UP) with a commanding 25-10, 25-20, 25-15 victory in the University Athletic Association of the Philippines (UAAP) Season 84 women’s volleyball tournament at the Mall of Asia Arena on Thursday.

Power duo Mhicaela Belen and Princess Robles once again took the cudgels for the Lady Bulldogs, combining for 25 markers in the easy match that lasted only 81 minutes.

Team captain Robles also added 12 digs while Ivy Lacsina had 11 markers on two aces for NU, which scored its fifth straight-sets victory in a dominant first-round sweep, the first in school history.

NU’s previous best start was a 6-1 outing in Seasons 76 and 80 with national team standout Jaja Santiago then still at the helm.

Save for dropping a set each against reigning champion Ateneo and runner-up Santo Tomas this season, the Lady Bulldogs wiped out the floor with La Salle, Adamson, Far Eastern University (FEU), University of the East (UE) and now UP.

That was despite Lady Bulldogs basically fielding a young but lethal squad led by super rookies Belen and Alyssa Solomon, who also provided nine markers in the big heading into the crucial second round.

“We have a young team so it’s good motivation and preparation for the next round. We’re bracing for adjustments of all teams so we needed this win for a momentum moving forward,” said coach Karl Dimaculangan, who’s also in his debut season with the youthful NU unit.

“We’re expecting a tougher campaign in the second round so we have to prepare harder,” he added.

No player scored in double figures again for the free-falling UP that stumbled to its fourth straight defeat after an impressive 3-0 start.

Earlier, Adamson kept UE winless with a 25-23, 25-20, 25-18 win to improve to 4-3 entering the second phase.

May Ann Nuique and Lorene Toring chipped in 15 and 14 markers, respectively, while Rizza Cruz had 10 in Adamson’s rebound win after having its three-game streak snapped by Santo Tomas the other day.

The Lady Warriors’ hunt for win remained elusive at now a 0-7 card despite Janeca Lana’s 16 points.

Is it possible to hire exceptional temporary workers?

May 20, 2022 | 12:01 am

We are a food and beverage manufacturer with 300 workers including 250 from three manpower agencies that compete to give us the most qualified workers. The proportion of temporary workers is higher than regular job holders to make it easy for us to discipline individuals, which is done by their employer-agencies and subcontractors. Is there a problem with that kind of set-up? — Water Lily.

To better understand your question we need to go back through history. People management started with the “cabo” system or the master-slave relationship during the period of Spanish colonization. “Cabos” acted as suppliers of cheap labor to small employers. Today, such an arrangement is known as the illegal practice of labor-only contracting, which facilitates the abuse of employees.

That’s the reason why trade union organizations are up in arms against labor-only contracting arrangements, which in some cases are done with the help of manpower agencies. For employers, such an arrangement is an important business strategy not only to fast-track worker discipline but to prevent the entry of unions.

Central to this issue is whether or not the jobs you’re assigning to the employees of manpower agencies are “necessary and desirable” to the conduct of your business. My point is that, I can’t simply tell you whether you have a problem or not in the absence of more information.

Corollary to this, we must understand that the existence of an employment relationship is subject to a four-point test — the points being the selection and engagement of employees, direct payment of wages, the power of dismissal, and the power to control employee conduct.

EMPLOYEE RETENTION
There are many questions that we must answer in your situation. And if we were to narrow down the issues, employee retention can’t possibly be done under the circumstances. One way of determining whether you have a problem is the attrition rate — if yours is in the double digits then you have a potential issue. Do you know the turnover rate for both your temporary and your regular workers.

After all, what kind of employer would want to shoulder the cost of repeated hiring and firing? While you’re in the process of sourcing and onboarding employees, you’ll be wasting a lot of time, money and effort in training them. In most cases, in the first few months, your new hires (be they direct hires or supplied by manpower agencies) could be unproductive or turning out poor quality work.

Not to mention, some agency employees are prone to habitual absenteeism and tardiness. I’ve interacted with many employers, big and small, that focus on retaining workers for the long term. They’re the real winners because they have well-planned comprehensive employment strategies that treat their employees (regular or not) as customers.

To help you understand what I’m talking about, I have come up with some basic steps to help the human resource (HR) department create and maintain a highly productive and motivated workforce:

One, employee retention is based on an HR planning process. In this case, HR analyzes the environmental factors to approximate demand for regular workers. They don’t guess as to the number of their employees for a certain period. They do their forecast by answering questions like, how are employees distributed, what are their demographics, what is the skills requirement, and so on. You can’t do this with manpower agencies that supply low-skilled workers.

Two, employee retention is based on motivating regular workers. Highly competitive employers don’t rely heavily on casual and temporary workers. In your case, this is clearly a red flag as temporary workers outnumber the regular ones. Such companies nurture and motivate regular workers to become potent forces in achieving business goals, rather than hiring temps with a “temporary” mindset.

Three, employee retention is managed by HR professionals. They have well-rounded, strategic experience in managing people, mainly in championing labor rights, balanced with business interests. They’re not your typical bureaucrats who blindly follow the business owner’s instructions to hire only “endo” workers. What separates good HR people from bad is their strict adherence to the rule of law, to the point where the appearance of labor inspectors does not faze them.

Last, employee retention is based on proactive communication. The questions to be resolved are: Is management giving the right amount of information about the company’s plans and programs? Is it interested in knowing the employees’ difficulties in performing their job? Why or why not? If there’s no routine communication, a grapevine dominated by rabble rousers and potential union agitators will fill the void with twisted information to meet their own ends.

DUE RESPECT
Employee retention starts with selecting, hiring and onboarding the right people. Unfortunately, per my experience, you can’t do this with manpower agencies and cooperatives, as they tend to provide low-skilled individuals. Of course, there are a few exceptions. Ninety-five percent of the time, agency workers will have a mindset that they are staying only for few years, and are looking for better employment elsewhere.

Agency employees see the world differently. People managers play a critical coaching role to bring out the performance expected. A critical element here is giving workers due respect, regardless of their employment status.

Have a chat with Rey Elbo via Facebook, LinkedIn or Twitter or send your workplace questions to elbonomics@gmail.com or via https://reyelbo.consulting