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BIR collection barely exceeds target in Feb.

BIR taxpayers
PHILIPPINE STAR/KRIZ JOHN ROSALES

By Beatrice M. Laforga, Reporter

THE Bureau of Internal Revenue (BIR) collected P134.27 billion in revenues in February, barely exceeding its collection goal as economic recovery remains sluggish.

BIR Deputy Commissioner Arnel SD. Guballa told BusinessWorld on Wednesday that the bureau’s tax haul surpassed its P134.18-billion target for the month by 0.07%.

However, BIR collections were 5.58% lower than the P142.21 billion collected in February 2020, before the coronavirus lockdown led to the closure of many businesses and a slump in consumption.

For the first two months of 2021, BIR tax collections reached P316.42 billion, 6.13% lower year on year.

It also fell short of the P317.18-billion year-to-date target by 0.24%.

In a Viber message, Mr. Guballa attributed the dampened tax collections to lower gross domestic product (GDP) against the pre-lockdown levels in the first quarter of 2020.

The government placed Metro Manila and other high-risk areas under a strict lockdown from mid-March to May 2020. While the economy has slowly reopened, some quarantine restrictions remain in place.

A sharp 9.5% drop in GDP last year and limited fiscal space forced the government to slash its projected tax revenues, while driving borrowings to new highs to cover for its massive P4.5- trillion spending plan this year.

The BIR, the largest tax collecting agency, has been tasked to collect P2.081 trillion for 2021, up by 7% from the P1.95-trillion actual collection last year.

The second-largest source of government revenue, the Bureau of Customs, collected P46.145 billion in duties and taxes in February. This exceeded the target by 9.5% and the year-earlier total by 3%.

Customs aims to generate P620 billion this year, up 15% from the actual P537.687 billion in 2020.

The government capped its budget deficit at 8.9% this year, with gross borrowings expected to reach P3 trillion.

Hong Kong-based toy manufacturers mull relocating to Philippines

HONG KONG-BASED toy manufacturers are considering relocation to the Philippines, the Board of Investments (BoI) said on Wednesday.

At the same time, a survey by Standard Chartered found companies based in the United States and Europe are looking at the Philippines as part of its expansion plans in Asia.

The BoI in February met online with representatives of the Toy Manufacturers’ Association of Hong Kong, whose 250 members have operations in Hong Kong and mainland China.

“(The) toy makers’ association acknowledged the rising production costs that their members have been experiencing and, thus, are seriously considering the Philippines for possible relocation and expansion of their operations,” BoI said in a press release on Wednesday.

Despite the pandemic, the toy industry in some countries grew, with sales in the United States rising 16% to $25.1 billion compared with a year earlier. This was due in part to a spike in demand for skateboards and fashion dolls, the NPD group said in a report released in January.

“One major theme in 2020 was the growth of online shopping. Some retail closures and consumer hesitancy towards shopping in stores led to a surge in online toy sales,” the report said.

Trade Undersecretary and BoI Managing Head Ceferino S. Rodolfo said that lockdowns declared to contain the coronavirus pandemic has led to a shift to home entertainment and online education, which in turn fueled demand for video games and digital education tools.

“While some traditional toy categories have seen a spike in 2020, the long-term trend is reflected in the strong repositioning of toy industry players as entertainment providers on multiple platforms,” he said.

To attract investors, Mr. Rodolfo touted the country’s reduction of corporate income tax under the recently ratified Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. The Philippines, he added, also has free trade agreements and preferential trade rates with countries like Japan, India, Australia, New Zealand, and some European countries that can widen Hong Kong export market access.

“Aside from market access, the Philippines can also provide for a broader production network for the manufacture of toys given the existing manufacturers in the Philippines as well as the sources of raw materials that the FTAs (free trade agreements) can provide,” he said.

Several toy manufacturers along with plastics, rubber, cotton, and textile suppliers operate in the Philippines.

The BoI said that 125 toy manufacturing firms registered with the agency since 1989, all of which amount to P450 million in investments. The biggest contribution was Mattel Philippines, Inc.’s P39 million.

Philippine toy exports in 2019 amounted to $171.6 million against $487.3 million in imports, the bulk of which came from China and Hong Kong, BoI said. These exports include traditional toys and video game consoles, but not video game applications and in-game transactions.

FIRMS EYE EXPANSION
Meanwhile, the Philippines is among the top five Southeast Asian markets that European and US companies are considering for expansion over the next six to 12 months, according to a study by Standard Chartered.

“With regulations noted as the number one concern among respondents looking to expand overseas, it could suggest an opportunity for the Philippines to increase foreign investment through greater awareness of the ease of doing business locally,” Standard Chartered said in a statement.

Over 85% of the respondents in the study are already operating, implementing, or considering business activities in Asia.

Across Asian markets, US and EU firms identified Japan (42%) China (36%), Australia (34%), and India (24%) as priority countries for expansion plans.

For European Chamber of the Philippines President Nabil Francis, the Philippines’ main strength is its relatively young, dynamic, and highly literate workforce.

“The Philippines has made some strides in improving ease of doing business as well as opening the market for more foreign investments,” Mr. Nabil said in a Viber message.

However, economists said the Philippines has to make improvements to attract more investments.

“The Philippines as an investment destination has long been in the pipeline of US and EU firms because of its diverse market and the relatively lower labor cost, not to mention the continuous infrastructure development the government is undertaking,” Colegio de San Juan De Letran Graduate School Dean Emmanuel J. Lopez said in an e-mail.

“Despite the pandemic, the Philippines is also a good destination for these companies particularly offshore services because of our unique advantage in trade in services. The Philippines just needs to enhance its infrastructure to harness this opportunity,” Asian Institute of Management economist John Paolo R. Rivera said in a text message. — Jenina P. Ibañez and Luz Wendy T. Noble

SEC online submission tool goes live on March 15

THE Securities and Exchange Commission (SEC) said corporations and partnerships can submit their annual financial statements (AFS), general information sheet (GIS) and other reports using its online submission tool (OST) starting March 15.

“With the OST, we are one more step closer to achieving our ease-of-doing business and sustainability goals, which have been at the core of our ongoing digital transformation,” SEC Chairperson Emilio B. Aquino said in a statement on Wednesday.

Corporations, partnerships and their authorized representatives should first fill out the online application form for the OST and submit required documents at https://ciffs-ost.sec.gov.ph.

Requirements include a board resolution authorizing a representative to file reports on behalf of the corporation or partnership and an accomplished 2020 GIS form. Law firms or consultancy firms can also sign up as authorized filers, on behalf of their clients.

“All stock corporations, including branch offices, representative offices, regional headquarters, and regional operating headquarters of foreign corporations, will be required to submit their reports using the OST starting this year,” the SEC said.

Nonstock corporations can still choose to submit reports in person this year, but will be required to use the OST by 2022.

Copies of a company’s AFS, GIS, sworn statement for foundation (SSF), general form for financial statements (GFFS), and special form for financial statements (SFFS) may be submitted during the initial run of the OST.

Firms can also submit via the OST the affidavit of non-operation (ANO) with the GIS or AFS, and affidavit of non-holding of annual meeting (ANHAM) with the GIS.

“The online facility will show the required format of the report to be submitted. For instance, a GIS must be submitted as an accomplished but unsigned form saved as a multipage portable document format (PDF) with text layer, as well as a high-resolution scan of the signed and notarized document saved as a multipage PDF,” the SEC said.

All submitted documents will be checked for quality. Filers will receive a QR code once the reports are accepted.

Reports will be available to the public through the Online Submission Portal.

The SEC said it will no longer accept hard copies, as well as submission via e-mail, mail or courier, and drop boxes in SEC offices.

“The OST is equally important in our efforts to automate business transactions to limit face-to-face interactions, and consequently help stem the transmission of COVID-19 and accelerate the country’s recovery from the pandemic,” Mr. Aquino said.

The commission also issued Memorandum Circular No. 3, Series of 2021 on March 9, which details the schedule for the filing of annual reports.

The GIS is required to be submitted within 30 days after a corporation’s annual meeting.

Corporations will need to follow a schedule based on the last digit of their SEC registration or license number for the submission of their AFS. Those with registration numbers ending with 1 should submit the reports within June 1-30; with 2 within July 1-31; those with 3 and 4 from Aug. 1-31; with 5 and 6 within Sept. 1-30; with 7 and 8 within Oct. 1-31; those ending with 9 and 0 within Nov. 1 to 30. 

If a corporation’s AFS is audited by the Commission on Audit (CoA), the company may submit beyond the filing schedule as long as an affidavit and a letter from the state auditor is provided stating the timely submission of financial statements and other documents.

The submission of AFS for companies with fiscal years ending on a date other than Dec. 31 should be done within 120 days from the end of their fiscal year. Meanwhile, public companies and other issuers of securities are given 105 days after their fiscal year to submit their AFS.

Corporations are given 30 days from the deadline of the AFS submission to submit their GFFS and SFFS on the OST.

“The SEC will no longer require the certification under oath, previously prescribed under SEC Memorandum Circular No. 6, Series of 2006,” the commission said. — K.C.G.Valmonte

Petron swings to P11-B loss as revenues fall

LISTED oil company Petron Corp. reported on Wednesday a net loss of P11.4 billion last year, swinging from a net income of P2.3 billion a year earlier, as sales declined due to the pandemic.

In a press release, Petron said that its consolidated revenues last year declined 44% to P286 billion, reflecting the impact of the global health emergency on its financial performance.

“For the whole of 2020, the company’s consolidated sales volume stood at 78.6 million barrels, down 27% from 2019’s 107 million barrels,” the country’s largest oil refining and marketing company said.

During the fourth quarter, however, Petron recorded a consolidated net income of P1.2 billion, which it attributed to “increased volumes and inventory holdings gains” as prices started to rally. The firm posted a P1.63-billion consolidated net income in the third quarter.

But the company noted that refining margins still remained soft in the fourth quarter, which challenged the economic viability of its Philippine operations.

Meanwhile, Petron’s consolidated revenues from October to December hit P69.6 billion, which it said “marked two straight quarters of growth” after the firm’s historic slump in the second quarter due to the pandemic’s impact.

“The last quarter of the year registered a 46% improvement from the P47.7 billion reported in the Q2, Petron’s hardest hit quarter in 2020,” it said.

Ramon S. Ang, Petron president and chief executive officer, said that the firm had been “working hard to minimize the pandemic’s impact on its business.”

“(O)ur performance in the second half of 2020 proves that we are moving in the right direction. We look forward to sustaining our recovery as we anticipate higher demand and a more stable industry situation with an end to this crisis finally in sight,” Mr. Ang said in a statement.

The firm, which also has a strong presence in Malaysia, said that it is now focused on improving its competitiveness.

In its statement, Petron said that its Bataan refinery’s inclusion as a registered enterprise of the Authority of the Freeport Area of Bataan (AFAB) would benefit the company in the paying of value-added taxes, which would be done as products are withdrawn from the refinery.

“We continue to implement various cost saving efforts, but tax efficiency is another critical area that should improve. Our AFAB registration will help make our refining business more competitive and financially viable as soon as demand recovers,” Mr. Ang said.

Petron said that it looks forward to a significant demand recovery in 2021, and it plans to resume its refining operations by the second half of the year.

It announced in December that it was suspending the operations of its 180,000 barrels per day refinery — the sole refining facility in the Philippines — to minimize losses from weak refining margins.

Petron, a unit of diversified conglomerate San Miguel Corp., has a combined refining capacity of 268,000 barrels-per-day and produces a full range of world-class fuels and petrochemicals.

Shares of Petron in the local bourse inched down 0.87% or three centavos to finish at P3.41 apiece on Wednesday. — Angelica Y. Yang

Singapore firm to invest nearly P12B in AC Energy

ARRAN Investment will subscribe to four billion primary shares through a private placement at P2.97 apiece. — ACENERGY.COM.PH

AN AFFILIATE of Singapore firm GIC Pte. Ltd. will be investing P11.88 billion in AC Energy Corp. (ACEN) for a 17.5% ownership stake in the local firm, the Ayala-led company said in a regulatory filing on Wednesday.

ACEN said that Arran Investment Pte. Ltd. would be subscribing to four billion primary shares through a private placement at P2.97 apiece.

The investment is subject to two pre-closing conditions, namely: ACEN’s completion of its stock rights offering of 2.27 billion shares at P2.37 apiece; and the issuance by the Treasurer of the Commonwealth of Australia — or his delegate — of a notice of no objection under the Foreign Acquisitions and Takeovers Act 1975 with respect to Arran and the AC Energy and Infrastructure Corp. (ACEIC) “international transaction.”

The investment agreement between ACEN and the latter’s parent firm ACEIC was inked with Arran on Dec. 30.

ACEN said that Arran had a “put option” to sell to ACEIC all of its subscription shares and top-up shares, if any of the following occur: the required shareholder approval for the listing of Arran’s subscription shares is not obtained by June 30; the deed of assignment between ACEN and ACEIC is not executed by Dec. 31; and if the approval of ACEN’s minority shareholders of ACEIC’s international transaction is not obtained, but only if needed by the local bourse.

The GIC affiliate’s private placement of P11.88 billion is one of the five steps in ACEN’s corporate restructuring, according to its President and Chief Executive Officer Eric T. Francia during a media briefing in November.

In a separate disclosure on Wednesday, ACEIC’s parent firm Ayala Corp. said that its board of directors had approved the firm’s issuance of fixed rate bonds with the aggregate amount of up to P6 billion with an oversubscription option of up to an additional P4 billion.

The bonds would make up the first tranche Ayala Corp.’s P30 billion shelf registration program, which was earlier approved by the board, and it will be subsequently filed with the corporate regulator.

Shares of Ayala Corp. in the Philippine Stock Exchange were unchanged at P779 apiece on Wednesday. Meanwhile, shares of ACEN improved 4.12% or 0.27 centavos to finish at P6.82 apiece. — Angelica Y. Yang

Cebu Landmasters enters dormitory business

REAL ESTATE developer Cebu Landmasters, Inc. (CLI) entered a joint venture worth P360 million with Terre D’Or Realty Corp. to develop a co-living space project named Sugbu Prime Estate, Inc. in Cebu.

CLI is entering the dormitory business after seeing a demand for shared spaces by young professionals and students.

“We have long wanted to do a co-living or dormitory project to cater to Cebu’s workers and were thus excited to explore this opportunity with the Farrarons,” CLI Chairman and Chief Executive Officer Jose R. Soberano III said in a statement on Wednesday.

The Farrarons family, which is behind Terre D’Or Realty, owns two hotels and a mall in Cebu City.

“Both our families believe this venture will contribute to the growth of Cebu and improve quality of living, especially for those seeking secure affordable housing near prime business areas,” he added.

The project will start with a 7,500 square meter property in Banilad, which is walking distance from Cebu IT Park. It is also near Cebu Business Park and is a ride away from the University of Cebu-Banilad, the University of Southern Philippines, and the University of San Carlos in Talamban.

A self-storage facility will be included in the property, with CLI citing a market study that forecast the demand for warehousing. The real estate developer said it would be useful for businesses doing e-commerce and home owners looking for extra spaces.

The mixed-use property will also feature retail spaces and more than 300 dormitory rooms.

“The project to be completed by the end of 2022 primarily targets young professionals and students returning to work and schools, respectively, and requiring comfortable home-away-from-home secure quarters that would spare them from the health threats and inconveniences of commuting,” the company said.

CLI expects the project to be a success as it projects a growth of outsourcing firms opening in Cebu. The co-living venture is the real estate developer’s latest move to diversify its portfolio, which already includes residential developments and hotels.

The company said it would disclose hotel partnerships for 307 rooms in the coming months. The company aims to roll out nearly 1,450 hotel rooms in the Visayas and Mindanao regions by 2024.

CLI shares at the stock exchange closed at P5.27 on Wednesday, going up by 0.38% from P5.25. — Keren Concepcion G. Valmonte

Filinvest Land unit to sell 1.63-B common shares

FILINVEST Land, Inc. (FLI) will sell around 1.63 billion common shares in subsidiary Cyberzone Properties, Inc. through a secondary offer worth P8.30 per share.

The FLI board of directors approved the initial public offering of the unit in a meeting on Tuesday, March 9.

The company is expected to submit requirements to the Securities and Exchange Commission and the Philippine Stock Exchange. Cyberzone Properties will also have to adhere to the revised implementing rules and regulations of the REIT Act of 2009.

The secondary offer of 1.63 billion common shares covers a third of Cyberzone Properties’ outstanding capital stock.

The real estate company previously increased its authorized capital stock to P7.13 billion, which was then divided into 14.26 billion common shares with a par value of P0.5 apiece.

An over-allotment option granted by FLI will also wait for the market regulators’ approval.

With the same terms of the secondary offer shares, a stabilizing agent or affiliate may collect up to 163.08 million common shares of Cyberzone Properties owned by FLI. These will be considered the option shares.

The board of directors assigned management to set the terms and conditions of the offer. — Keren Concepcion G. Valmonte

Toyota launches sporty Vios

TOYOTA MOTOR Philippines Corp. (TMP) is rolling out the sporty variant of its Vios model as part of its efforts to sell more locally produced cars while it looks forward to the potential timeline extension of a government incentives program.

The company on Wednesday launched its Vios GR Sport, a model assembled in its Santa Rosa, Laguna plant.

TMP Senior Vice-President for Marketing Jose Maria Atienza said that the rollout has been in the works before the imposition of safeguard duties on imported cars, but it is part of efforts to improve sales and increase local production.

“In general, this is one of those additional efforts for Toyota to enhance our sales of our CKD (completely knocked down/locally assembled) models — Vios being our number one model,” he said at the online media launch.

The Department of Trade and Industry (DTI) imposed provisional safeguard duties on imported cars after it found a link between a decline in employment in the local industry and an import surge, based on a petition from an auto parts labor group.

The Safeguard Measures Act or Republic Act No. 8800 allows domestic producers to ask the government to conduct an investigation into their import competitors if they claim to have been injured by excessive imports.

Car manufacturers including Toyota have started raising prices as they collect deposits for cars affected by the provisional duties while the Tariff Commission conducts its own investigation.

The new Vios model will be part of Toyota’s commitment to the government to locally produce cars.

The Comprehensive Automotive Resurgence Strategy (CARS) program offers fiscal support to car companies that locally produce 200,000 units of high-volume car models for six years.

TMP First Vice-President Rommel R. Gutierrez had previously said that car manufacturers want the government to extend the compliance period, noting that the companies may not be able to meet the production target after a sales slowdown caused by the pandemic and the Taal Volcano eruption last year.

“We’re still discussing with DTI on the extension of the period, but again DTI understands the necessity — that the CARS program needs to be extended,” Mr. Guttierez, who also heads a car industry group, said during the online launch.

“That’s why we are quite positive about the final decision of the DTI and we understand that it’s not only DTI who’s going to decide on that, but we gather that DTI favorably recommended the extension of the CARS program.” — Jenina P. Ibañez

PLDT to launch digital platforms for hospitals by Q2

PLDT, Inc. is set to launch digital platforms for hospitals in the country by the second quarter of the year, a company official said.

“From a health perspective, we’ve been working with a lot of our partners actually, and we are looking at enabling some of our hospital groups for that capability by the second quarter of the year,” Juan Victor I. Hernandez, PLDT senior vice-president, head of PLDT & Smart Enterprise Business Groups and ePLDT president and chief executive officer, said at a recent online briefing.

He added: “We have proof of concepts already that are being undertaken, and we are just in the process of finalizing them.”

He said PLDT is not sticking to one platform. “We’ve made a decision to make sure we have multiple platforms to be able to serve a lot of our customers in that regard.”

For his part, PLDT Chief Revenue Officer Alfredo S. Panlilio said: “We are internally also building a solution for ourselves in terms of the vaccination, because we know that we will have to monitor that as we take delivery of the orders that we’ve had for our employees.”

“We are also working on an app,” he added.

To recall, PLDT Chairman, President and Chief Executive Officer Manuel V. Pangilinan, who also serves as chairman of Metro Pacific Investments Corp. (MPIC), said last year that MPIC’s hospitals under Metro Pacific Hospital Holdings, Inc. (MPHHI) would be offering services through digital platforms.

MPHHI operates 16 hospitals with a combined capacity of 3,400 beds across the country, including Makati Medical Center, Cardinal Santos Medical Center and Asian Hospital & Medical Center.

MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being PLDT and Philex Mining Corp.

Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Globe’s tech firm Yondu bullish on maintaining growth this year

GLOBE TELECOM, Inc.’s technology company Yondu, Inc. is optimistic that its revenue growth will continue this year, after seeing “significant market success” last year.

“We see the need for business continuity as a critical driver for growth. People are now more oriented to the crucial role of technology in making enterprises more resilient and future-ready, expediting businesses’ digital transformation,” Yondu President and Chief Executive Officer Joan D. Peñaflorida said in an e-mailed statement on Wednesday.

According to Globe, its non-telco products generated a total of P1.3-billion revenues last year, up 99% from the previous year. Main contributors were Electronic Commerce Payments, Inc. or ECPay and Yondu, it noted.

Yondu delivers solutions such as information technology services, service management, software development, and turnkey solutions, among others, to various businesses.

Health Management for Enterprise (HealthMe), a mobile application that allows companies to keep track of employees’ health, and Vessell, an e-commerce platform builder that gives business owners the ability to create personalized online stores, are among Yondu’s products that saw “significant market success” last year.

Ms. Peñaflorida said, “People have placed the utmost importance on their health and safety, which makes contactless solutions viable innovations.”

“We believe that there is a plethora of opportunities in this innovation, especially when we integrate the Internet of Things,” she added.

Globe recently reported a 13.04% decrease in its core net income for 2020. The company attributed the decline to the impact of the coronavirus pandemic on its operations.

But Globe’s home broadband business performed well last year, as the revenue increased 23.23% to P26.80 billion from P21.75 billion.

Mobile revenue declined 7.08% to P103.11 billion from P110.97 billion.

The company’s EBITDA (earnings before interest, taxes, depreciation and amortization) for 2020 totaled P73.51 billion, down 3.31% from P76.03 in the previous year.

The company said it is optimistic about regaining momentum this year as the Philippine economy continues to recover.

For 2021, Globe has set a capital expenditure (capex) budget of about P70 billion, higher than last year’s revised capex guidance of P50 billion. — Arjay L. Balinbin

After tuna and corned beef, Century enters plant-based ‘meat’ market

ONE of the country’s biggest food companies, Century Pacific Food, Inc. (CNPF), is throwing its dice in the plant-based food category with unMEAT. The company is looking to enter not just the Philippine market for meatless “meat” but also plans to expand abroad.

The company behind tuna brands such as Century and 555 Tuna and canned meats Argentina, Wow!, and Swift Premium has developed a line of nuggets, sausages, patties, and giniling (ground “meat”) that is 100% plant-based: made without dairy or eggs, and containing neither cholesterol nor trans-fat. Century Pacific Food, Inc. General Manager Nikki Dizon said during an online press launch late last month that there are less than 10 ingredients in unMEAT, including soy protein, oils, salt, onions, soy sauce, and vinegar —  things that are easy to pronounce and can be found in people’s pantries.

According to a release, unMEAT was first introduced through Shakey’s Pizza’s newest offering, the Goood Burger. BusinessWorld got to try the burger and found it a little bit smoky-sweet, and with a firmer texture than a normal beef burger. Otherwise, if one did not know what was, they would likely conclude that it was a normal burger.

“One of the biggest concerns about plant-based foods is that they are not delicious or as pleasing to the palate as real meat,” Ms. Dizon was quoted as saying in the statement. “But our Nutrition Science team took that as a challenge, and completely delivered by coming up with a meat alternative that unbelievably and undeniably looks, feels, and tastes like meat. Moreover, they made unMEAT using simple ingredients and extracted the nutrients from real food rather than synthetic compounds so it’s healthier and more affordable.”

The brands in Century Pacific’s portfolio are among the nation’s most familiar, and one might wonder why they would enter new, meatless territory. “It’s in our mission and vision to really nourish and delight. When we say nourish and delight, we want to be inclusive in what markets we cover, and that includes the plant-based market. More and more, we have friends and family who are going into plant-based diets. We want to be able to capture that —  it’s not just about the common meats you see now,” said Ms. Dizon.

They also unveiled plans to roll out unMEAT in as many as 80 countries. Gregory Banzon, Executive Vice-President and COO of Century Pacific said that they’re undergoing regulatory processes in those countries, which Ms. Dizon says includes the US, the UK, China, Singapore, and the Middle East. Mr. Banzon, meanwhile, gave a timeline for this rollout in about two quarters, or about six months. “We really want to bring the goodness of unMEAT to as many [people] as possible,” said Ms. Dizon.

“I personally believe that plant-based food will move from a niche item into the mainstream, and will be a high-growth category,” said Chris Po, Executive Chairman of Century Pacific.

UnMEAT is already available in some supermarkets, and can also be found on online shopping platforms like Lazada. At Lazada’s Swift official store, unMeat products cost between P120-P135 for 200-226 gm packs. —  Joseph L. Garcia

San Miguel food unit posts P22.4-B net income

SAN MIGUEL FOOD and Beverage, Inc. (SMFB) posted a net income of P22.4 billion last year, which its top official described as “extremely challenging” but marked by a “strong” rebound in the second half.

SMFB President and Chief Executive Officer Ramon S. Ang said the company’s businesses had been able to deliver volume growth despite the challenges it faced in 2020.

“These encouraging results demonstrate the company’s resilience in the face of the global crisis and positions itself for a strong and stable recovery,” Mr. Ang said in the statement on Wednesday.

The listed company did not give its comparative bottomline in 2019.

For 2020, consolidated revenues dropped 10% year on year to P279.3 billion, while consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) reached P46.8 billion.

“Second half consolidated revenues were up 27% to P156.5 billion from P122.8 billion in the first half while consolidated operating income jumped 94% to P22.0 billion from P11.4 billion in the first semester,” SMFB said.

According to SMFB, profits during the period were driven by its beer business, San Miguel Brewery, Inc. (SMB), which posted growth in the second half of 2020 after the lifting of liquor bans in different parts of the country.

SMB’s net income for 2020 reached P17.5 billion, with its consolidated revenues for the period amounted to P107.9 billion.

“The strong performance was backed by company-initiated consumption-generating programs, direct-to-consumer initiatives and cost containment efforts,” SMFB said.

“SMB’s international operations also benefitted from easing of restrictions in the second half of the year. Its Hong Kong, South China, Vietnam, and export markets delivered profits significantly better than 2019,” it added.

SMFB’s spirits business, Ginebra San Miguel, Inc. (GSMI), posted a net income of P2.8 billion, up 65% year on year after delivering 38.6 million cases despite the coronavirus disease 2019 (COVID-19) pandemic.

GSMI’s consolidated revenues also rose 25% to P36.2 billion, while its EBIDTA climbed 38% to P5 billion.

Meanwhile, consolidated revenues of the company’s food segment, San Miguel Foods (SMF), reached P135.2 billion, while its EBIDTA improved 8% year on year to P12.2 billion.

“Its prepared and packaged food segment benefitted most from the shift delivering a solid double-digit performance in 2020,” SMFB said.

“This segment also helped mitigate the effects of the softening of certain segments, particularly the protein business, as operations of most of its food service customers were affected by community quarantine restrictions,” it added.

Mr. Ang said the company is filled with optimism for 2021, adding that the worst of the COVID-19 pandemic is already over.

“We will continue to adapt to the changing market conditions and leverage on lessons learned. Soon, we will re-emerge stronger and more resilient on the path to long-term profitable growth,” Mr. Ang was quoted as saying.

On Wednesday, shares of SMFB at the stock exchange fell 1.23% or 80 centavos to end at P64.20 apiece. — Revin Mikhael D. Ochave

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