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Atlas Mining net loss widens to P153 million

ATLAS CONSOLIDATED Mining and Development Corp. on Wednesday reported a net loss of P153.16 million in the second quarter, nearly five times more than its losses in the same period last year, largely after a decline in its copper revenues.

Quarterly revenues slipped to P4.01 billion, down 2.3% from a year ago, of which copper revenues accounted for nearly P2.99 billion, down 15.8% from P3.55 billion in the same period last year.

In a statement, the mining company said the copper price in the second quarter decreased, pulling down the average realized copper price for the first half to $2.47 per pound or 12% lower than the year-ago price.

At the same time, it said the average realized gold price increased by 26% to $1.647 per ounce this year.

Atlas Mining’s gold revenues during the quarter reached P993.25 million, up 79.2% from P554.33 million.

In the first half, the company’s net loss attributable to equity holders widened nearly three times to P189.92 million, in part because of higher deferred tax provisions this year.

Its core income rose 66% year on year to P366 million, against P220 million in the same period. Gross revenues fell 6% to P8.05 billion.

The company’s earnings before interest, tax, depreciation and amortization (EBITDA) increased 12% to P3.37 billion after the drop in revenues caused by lower copper prices was offset by lesser cash costs.

“This underpinned the increase in core income for the period and the increase in cash generated from operations, which enabled the payment of $20 million of its loans this year in addition to the $52.7-million loan payments for the year 2019,” the disclosure said.

The company’s wholly owned subsidiary, Carmen Copper Corp., posted a 5% increase in its copper metal production to 54.17 million pounds while gold production rose 26% to 22,815 ounces due to higher tonnage milled and higher realized gold grades.

Atlas Mining said its milling tonnage rose 9% to 9.07 million tons while its copper grades fell 5% to 0.311% and gold grades climbed 25% to 7.68 grams per dry metric ton (DMT).

“Copper metal content of concentrate shipped was sustained at the same level from 53.57 million pounds to 53.36 million pounds while gold content increased by 19% to 20,348 ounces due to higher gold grade,” the disclosure said.

Atlas Mining President Adrian Paulino S. Ramos said that despite the coronavirus disease 2019 (COVID-19) pandemic, the company was able to meet all shipments and endure difficult market conditions in the first half of the year.

“Our costs significantly improved due to the completion of our peak waste stripping years. Lower stripping costs going forward should give Atlas the operating efficiency to weather any copper price cyclicality and to begin to pay down our debt,” he said.

“We remain mindful of our responsibility to our many stakeholders during the COVID-19 pandemic and have made operational adjustments that prioritize the health and safety of our people, while collaborating with our communities to ensure their welfare,” he added.

On Wednesday, shares of Atlas Mining were unchanged at P2.64 per share. — Revin Mikhael D. Ochave

AC Energy local unit earns nearly P2 billion after asset infusion

AYALA-LED AC Energy Philippines, Inc. (ACEPH) recorded P1.96 billion in net income in the first semester from over a quarter loss previously, driven by the additional assets injected into the company.

To recall, the company has entered into a deal with AC Energy, Inc., which acquired shares equal to P2.97 each from the listed firm for its energy projects with 176 megawatts (MW) of capacity. These add to the 145-MW renewable energy projects that ACEPH bought early in the year.

With more projects, the company said it can launch more local investments soon.

“This allows us to make additional near-term investments in the country, which is much needed during these difficult times,” AC Energy President and Chief Executive Officer Eric T. Francia was quoted as saying in a disclosure to the stock exchange, Wednesday.

Also contributing to its first-half profit are its thermal plants with higher availability and the greater contracted capacity sold through Manila Electric Co.’s (Meralco) generation bidding.

South Luzon Thermal Energy Corp. posted 95% availability between January and June, while ACEPH’s peaking diesel plants provided 93% of available generated power.

The company also started delivering power from its 200-MW baseload and 110-MW mid-merit facilities to Meralco in the period.

It claimed the contracted capacity has offset the lessened volumes and reduced spot market prices during the lockdown months since mid-March.

ACEPH is in the process of changing its corporate name to AC Energy Corp., signifying the integration of AC Energy’s domestic and foreign businesses.

Earlier, it said the combined platform is valued at approximately P97 billion with a perceived attributable capacity of around 1,500 MW in operating and under-construction power plant projects, 60% of which are renewables.

It has yet to receive approval for the name change, while the Philippine Stock Exchange has already signed off its stock symbol change to ACEN, effective Aug. 14.

The power company aims to become Southeast Asia’s biggest renewables platform and reach 5,000 MW of capacity over the next five years.

Shares in ACEPH fell by 4% to close at P2.64 each on Wednesday. — Adam J. Ang

When times get tough, plant a garden

By Joseph L. Garcia, Reporter

“THE whole world is aflame. All the peoples of the United Nations are fighting the savage enemies of freedom,” blared a propaganda film by Disney and the US Department of Agriculture in 1942. The title of the film? Food Will Win The War, in turn taken from a WWI slogan popularized by President Woodrow Wilson. We at home now fight a war, not against the Axis Powers as in the 1942 film, but against a virus. During times of trouble, it is wise to have easy access to food. Three ladies we talked to took it directly from the Earth (with a little bit of prodding from their green thumbs).

These three ladies, like most of us, have been spending a lot of time at home, and have converted vacant lots or rooftops into vegetable gardens. They sound a lot like victory gardens the Allies encouraged their citizens to grow during WWII: they served to reduce pressure felt from food shortages, as well as boosted morale by making people on the homefront feel they were in on the fighting too.

The ladies we talked to did it for different reasons. Based on their answers, it had a lot to do with finding themselves through the earth.

“I had my own veggie garden while I was in grade school, also at a vacant lot. It gave me a sense of purpose and accomplishment. And because neighbors would ask for whatever I had harvested, it made me proud,” said Miren Suntay. “When we moved house, gardening ended because there was no place to start a veg garden where we moved to. Also, I lost interest because, well, boys,” she said in jest. “I wanted to start gardening again about 10 years ago, after my husband passed away. But time and energy was hard to muster. Five years ago, I began. My housekeeper, a green thumb herself, had always grown ornamental plants — so we fought a lot about that. I wanted gulay too!”

“I have my garden at my property, but have also taken a portion of a vacant lot to grow most vegetables. I requested for those constructing houses in the village to dump their soil on this empty lot, instead of them having to pay to haul soil to another site. Win win!” said Ms. Suntay, who also set up a Facebook page, The BF Urban Gardeners, for her neighborhood. Her garden grows okra, eggplant, ampalaya (bitter melon), alugbati (Malabar spinach), sili (chilies), tomato, kangkong (water spinach), papaya, watermelon, basil, tarragon, peppermint, oregano, onion, garlic, stevia, blue ternate (clitoria ternatea, commonly known butterfly pea), avocado, pipinito (baby cucumber), mustard, lettuce, cucumber, ube (purple yam), chicharo (green peas), squash, melon, spinach, “and a few more.”

Susan Isorena-Arcega, PR Consultant for Manila Broadcasting Co., has a garden on her rooftop. “I love flowers, particularly hibiscus and bougainvillea. But since I got diagnosed with Stage 3 endometrial cancer last year, I decided to cultivate edibles, too,” she said.

“I already had a lush growth of ternate after a friend gave me pods when I visited Dewi Sri Farms in Pila, Laguna several years ago, and some ginseng, ashitaba, and oregano as well. But then I went into isolation because I was immuno-compromised, and rented a studio unit a street away from my family. I decided to start with the same plants on the rooftop of the apartelle where I live. It was just a laundry area, with grey cement and unfinished posts with steel jutting out, but with magnificent views of Rockwell. I wanted to add some color somehow. I had some cucumber, carrot, tomato, and lettuce seeds that I had previously bought from the hardware at Robinsons but never got to plant, so I said, well, let’s try it.”

In March, the garden got busier when the city was placed under a community quarantine and Ms. Isorena-Arcega began working from home. She heard that the Department of Agriculture — Bureau of Plant Industry was giving out seeds. “I wrote them and they gave me okra, kangkong, upo (calabash), pechay, and mustasa (Chinese cabbage, and Chinese mustard) which I planted too,” she said.

She also used recyclable materials like big water bottles as plant containers. “When my landlady saw the seedlings sprouted and tomatoes actually bore fruit, she decided to join in and had her handyman set up trellises around the rooftop. I have harvested cucumbers, pechay, kangkong, and mustasa several times already. My landlady grew alugbati, ampalaya, aloe vera, tanglad (lemon grass), kamuning (orange jessamine), and eggplant. She too has harvested. Ngayon meron na rin siyang pakwan (she now has watermelon)!”

Victoria Fritz, meanwhile, helped jumpstart a community effort up in Blue Ridge. “I started growing vegetables in our backyard when I lost my day job, just last September. So one could say that a loss brought forth a garden. I am just a beginner gardener. I have grown bushels of tomatoes, eggplants, a few bell peppers that turned out small, and healthy okras,” she said. “The ECQ gave birth to The Garden Club at Blue Ridge A, our village. I am a board member of the Blue Ridge A Homeowner’s Association, and when one resident asked for a gardening group, our board responded. It just started in June, and is mainly a support group of vegetable growers. We exchange tips, ideas and seeds, among other things. We have held two teaching webinars.” The Garden Club is a joint project of the HOA and the Blue Ridge A Barangay Council.

“Last July, we began looking into an empty lot to serve as a community garden. A Garden Club member, Eleanor, took the initiative to request seeds from the Bureau of Plant and Industry, since it is BPI’s program to offer seeds to private groups. Twelve people have signed up to volunteer. However, due to COVID-19 and the rainy weather, getting together in the community garden has been put on hold for now. Our plan is to grow a whole range of vegetables, and even ornamental plants. We plan to compost in the soil first, to create rich and healthy soil, ready for planting. Next we will plant the seeds from BPI.”

We asked the ladies for tips on planting a successful urban garden. Most of them emphasized the value of good soil. “Skill gives the edge, but soil composition can truly turn a struggling vine into the most lush (plant),” said Ms. Suntay. All of them had tips on making great compost, to use on soil to make it richer. “You need to compost food waste in the soil. Start with the fruit and vegetable trimmings, which are clean and compost most quickly. Layer the pot with soil, then food waste, put some dried leaves if you have them, and cover with soil completely. After about a month, or even less, this soil is now compost where you can grow seeds,” said Ms. Fritz. “I enrich mine further with banana peels cut into tiny bits,” offered Ms. Isorena-Arcega. She added, “Essentially, plants thrive on a lot of TLC — daily watering and pruning.”

Ms. Isorena-Arcega and Ms. Suntay both admitted to talking to their plants. They share the practice with Charles, Prince of Wales. “I happily talk to the plants and trees, and listen to them. I think it’s absolutely crucial,” he said in a BBC documentary.* Ms. Suntay said in a mix of English and Filipino, “I talk to them. I say ‘sorry’ if I need to cut or move them. I ask why they are not growing as they should — they haven’t answered. They might soon, if this pandemic continues,” she said in jest. One might think it’s silly, but science is on their side (not so much on Prince Charles’, if only based on his sex): an experiment by the Royal Horticultural Society, as reported by The Telegraph in 2009, found that “Women gardeners’ voices speed up growth of tomato plants much more than men’s.”** “In an experiment run over a month, they found that tomato plants grew up to two inches taller if they were serenaded by the dulcet tones of a female, rather than a male,” continued the report.

The obvious benefits of urban gardening during a pandemic includes ready access to food. Aside from nourishing the body, what you get from an urban garden — or actually, just growing things in general — helps the spirit too.

“Gardening is beneficial in so many ways. A vegetable you grow will be hygienic, organic and earth friendly. You know what you put into it (no chemical fertilizers and pesticides), and it has zero carbon footprint since it didn’t travel. It’s also economical for you, and means savings,” said Ms. Fritz. However, “For me as a Zen practitioner, it’s most important benefit is spiritual. It brings me closer to the earth, and my true self. I am happy in the soil.”

“I derive a lot of happiness tending to the garden. It’s like rearing children,” said Ms. Isorena-Arcega. “Essentially you bring forth life.”

“Really, because we live in a concrete jungle, it’s nice to see more greenery and color. Plus birds, butterflies, and dragonflies too.”

“I suspect it keeps people sane, these past months in particular,” said Ms. Suntay. “It keeps anxiety at bay. It helps keep you focused on how self reliant we can be, given the circumstances. Seeing something thrive because of your work is so fulfilling. It doesn’t need to be a vegetable garden, although having one would mean less trips to market and less exposure to the public. An ornamental one, with all the colors and textures, does wonders feeding good energy.”

*https://abcnews.go.com/GMA/prince-charles-eavesdrops-tourists-speaks-plants/story?id=11679656

**https://www.telegraph.co.uk/news/earth/earthnews/5602419/Womens-voices-make-plants-grow-faster-finds-Royal-Horticultural-Society.html

TDF yields go up as bids decline after record retail bond issuance

YIELDS ON THE term deposits offered by the Bangko Sentral ng Pilipinas (BSP) rose on Wednesday as bids declined following the record-high amount raised from retail Treasury bonds (RTBs) last week.

Total bids for the BSP’s term deposit facility (TDF) hit P264.94 billion on Wednesday, lower than the P320-billion offering. It was also smaller than the P526.49 billion in tenders logged the previous week for the P380 billion on the auction block.

Broken down, the seven-day deposits fetched bids amounting to P98.58  billion, lower than the P140-billion offering as well as the P196.23 billion in tenders recorded on Aug. 5.

Rates for the one-week tenor ranged from 1.75% to 2.25%, a wider band than the 1.75% to 1.756% margin seen last week. This caused the average rate of the papers to settle at 1.781%, increasing by 2.68 basis points (bps) from the 1.7542% seen last week.

Meanwhile, the 14-day term deposits attracted tenders worth P104.13 billion, lower than the P130 billion auctioned off and the P247.365 billion in bids last week for the P180 billion up for grabs.

Banks asked for returns ranging from 1.75% to 2.625%, a wider margin than the 1.75% to 1.77% seen last week. This brought the average rate of the two-week deposits to 1.8658%, rising by 10.92 bps from the 1.7566% logged during last week’s auction.

For the 28-day papers, demand stood at P62.23 billion, surpassing the P50 billion on offer but lower than the P82.895 billion in tenders seen the previous week for the P80 billion on the auction block.

Accepted yields for the one-month deposits ranged from 1.7527% to 1.8125%, wider than the 1.75% to 1.799% band the previous week. Following this, the average rate for the tenor settled at 1.777%, inching up by 1.15 bps from the 1.7655% recorded a week ago.

The TDF is the central bank’s primary tool to mop up excess liquidity in the financial system to better guide market interest rates.

“The TDF auction results reflected in part the temporary impact of the scheduled settlement of the retail treasury bonds as well as the market participants’ reaction to recent developments such as the release of the lower-than-expected Q2 2020 GDP (gross domestic product) data,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement.

The government raised a record P516.3 billion from its three-week RTB offer which closed on Friday. The proceeds will be used for the government’s coronavirus response as tax collections fall amid slowing economic activity.

The country’s GDP shrank by 16.5% in the second quarter after the 0.7% contraction in the first three months, plunging the economy into a recession.

Recent signals from the central bank chief that rates are likely to be maintained in the near term also caused TDF yields to go up, said Rizal Commercial Banking Corp. Chief Economist Michael R. Ricafort.

BSP Governor Benjamin E. Diokno on Monday said there is “no compelling reason” right now for further rate cuts as its previous easing moves have yet to be digested by the market.

The central bank chief said keeping rates unchanged for the next few quarters is a “possibility” as the Monetary Board’s previous moves were anticipatory in nature.

The BSP has slashed benchmark rates by 175 bps so far this year, bringing the rates on its overnight reverse repurchase, lending and deposit facilities to record lows of 2.25%, 2.75% and 1.75%, respectively.

The Monetary Board will review its policy settings on Aug. 20. — Luz Wendy T. Noble

2GO swings to P622-M loss on limited operations

2GO GROUP, INC. posted an attributable net loss of P621.60 million for the second quarter compared with a profit of P23.73 million in the year-earlier period, citing limited operations in various areas, especially Luzon, as a result of coronavirus quarantine restrictions.

In a regulatory filing on Wednesday, 2GO Group reported that its gross revenues for the quarter declined 30.32% to P3.93 billion from the last year’s P5.64 billion.

The group said travel revenues significantly dropped during the period due to quarantine-related travel restrictions, which started in mid-March.

“The Group experienced a slowdown in volumes particularly in April and May, when most of the Philippines was under enhanced community quarantine. The group’s revenues increased in June as the National Capital Region and certain areas transitioned to general community quarantine, though revenues are still below 2019 levels,” it added.

The listed company’s gross expenses for the quarter declined 17.33% to P4.39 billion from P5.31 billion posted in the same period last year.

To recall, the listed shipping and logistics provider posted an attributable net loss of P108.92 million for the first quarter from the previous year’s net loss of P369.03 million.

The company attributed its net loss in the three-month period to reduced travel revenues, especially during the last two weeks of March when the government placed the entire island of Luzon under an enhanced community quarantine to contain the virus.

“It is expected that trade receivables, particularly those due from small- and medium-scale enterprises, will likewise deteriorate in collectability and may necessitate provisioning for estimated losses due to non-collection as may be deemed prudent,” the listed company also said on Wednesday.

It said as of the date of its quarterly regulatory filing, the company’s management has set aside a provision of around P55 million for estimated losses due to noncollection.

“Except as disclosed in the management discussion or notes to the consolidated financial statements, there are no other known trends, events, material changes, seasonal aspects, or uncertainties that are expected to affect the Group’s continuing operations or that will trigger direct or contingent financial obligation that is material to 2GO, including any default or acceleration of an obligation,” it added.

On Wednesday, shares in the company rose 1.58% to close at P8.38 each. — Arjay L. Balinbin

Century Properties gets nod to acquire joint-venture shares

THE Philippine Competition Commission (PCC) has approved Century Properties Group, Inc.’s (CPGI) acquisition of voting shares in Century City II Development Corp. (Century Development II).

CPGI will acquire common shares representing 40% of the total outstanding capital stock in Century Development II from FMT Kalayaan, Inc.

Century Development II is a joint venture between Century City Development Corp. and FMT Kalayaan, Inc.

CPGI will acquire sole control after the termination of the joint-venture agreement, and after the sale of FMT Kalayaan to CPGI of its 511,561,143 common shares of stock in Century Development II.

The 40% of the total outstanding capital stock has a par value of P1 each. The purchase price of the sale shares is P1.9 billion.

The proposed transaction is not likely to result in competition concerns because it will not change the structure of the office leasing market, PCC said in a press release on Wednesday.

The commission said there are enough competitive constraints from others in the office leasing market in Makati City and Bonifacio Global City after the transaction.

PCC will take no further action.

CPGI is a publicly listed company in real estate development. Its parent company Century Properties, Inc. works on real estate development, selling and leasing, property management services, asset management services, marketing and promotion of service, and hospitality and leisure.

The commission, which reviews big-ticket mergers and acquisitions, received five notifications with a combined value of P49.3 billion since it restarted notifications in mid-May. — Jenina P. Ibañez

Xiaomi wants to be a manufacturing powerhouse

XIAOMI CORP. celebrated its 10th anniversary with the launch of some new products and the promise from its chief executive officer that it’ll become “a major force in China’s manufacturing sector that no one can ignore” over its next decade.

Co-founder and CEO Lei Jun took the stage on Tuesday to recount Xiaomi’s history — born as an internet upstart that disrupted China’s retail status quo — and plot out a markedly different course for its future. “Xiaomi will systematically empower China’s manufacturing industry with internet know-how,” Mr. Lei said. “Smart manufacturing will fuel the prominent growth of Chinese brands.”

Xiaomi said it has developed a fully automated smartphone assembly line and its investment arm has invested in about 70 semiconductor or smart-manufacturing firms. The smart factories that Xiaomi envisions would compete with manufacturing specialists like Foxconn, also known as Hon Hai Precision Industry Co., which has previously made similar efforts to smarten up its processes. For Mr. Lei, it’s an essential move to ensure Xiaomi’s prosperity, as “we can’t defend our industry position without continuing to move forward.”

For the present, Xiaomi remains focused on its consumer business, which was graced by the launch of a new flagship Android phone in the 6.7-inch Mi 10 Ultra, adding to the rapidly expanding stable of 5G smartphones. The device differentiates itself with a 120x zoom system nestled in a large multicamera array on its back along with a super-fast 120W charger in the box. It starts at 5,299 yuan ($763) and will be available from Aug. 16. Alongside it, Xiaomi also unveiled a transparent OLED TV set and a Lamborghini Edition GoKart, burnishing its credentials as a company willing to make bold design decisions.

Now the world’s fourth-largest smartphone brand, Xiaomi was founded by a team including serial entrepreneur Mr. Lei and former Google engineering director Lin Bin in Beijing in early 2010. Pioneering an internet-based sales and marketing model, Xiaomi became an instant hit in China where most mobile devices were sold by brick-and-mortar resellers and telecom carriers.

The company distinguished itself by selling phones with sleek designs — commonly accused of imitating Apple, Inc.’s iPhone too closely — the most up-to-date processors and prices that were a fraction of those from competitors like Apple, Samsung Electronics Co. and Lenovo Group Ltd.

In an effort to expand its appeal and markets beyond China, Xiaomi made a big splash in 2013 by hiring Google’s Hugo Barra, then Android vice-president, to lead its international efforts. With his help, the company undertook a campaign to shed its widespread image as an iPhone copycat and invested more in developing its own design and engineering credentials. The company expects to spend 10 billion yuan ($1.4 billion) on research and development this year, Mr. Lei said.

At the zenith of its powers, Xiaomi briefly held the no. 3 spot among global smartphone makers and was China’s leader. But around 2016, local competitors Oppo and Vivo cut into Xiaomi’s market share by adopting the opposite strategy to Mr. Lei’s online focus: enlisting tens of thousands of private electronics store owners to sell their devices in small towns and villages. The move unlocked access to rural residents eager for their first smartphone, a market with hundreds of millions of potential buyers that Xiaomi wasn’t able to reach.

After some supply chain issues around the same time, Xiaomi slumped to seventh in global smartphone shipments, according to IDC data, and Mr. Lei hired former Qualcomm, Inc. executive Wang Xiang to steer Xiaomi’s new international expansion strategies from India to Spain and the UK.

The Chinese company has been on a recent run of introducing futuristic-looking phones featuring industry firsts, such as bezel-less screens and exotic materials like ceramic bodies. Mr. Lei has also tried to lift Xiaomi beyond smartphones with an expansive array of other consumer products that can be purchased from the company’s online store, including laptops and luggage.

The Beijing-based company has invested in a large number of hardware startups to make Mi-branded appliances and electronics from rice cookers to scooters. Yet the efforts have so far failed to convince investors that Xiaomi is an internet company rather than a hardware vendor. Xiaomi’s stock has mostly traded below its initial public offering price since its debut in Hong Kong two years ago. — Bloomberg

Veega: Tastes like chicken

By Joseph L. Garcia, Reporter

WHEN confronted by an exotic meat, some people will usually say it “tastes like chicken.” A new vegetarian line by food giant San Miguel called Veega, consisting of nuggets, sausages, ground meat analogue, balls, and burger patties might make you say the same.

Veega is made of mushroom, wheat and soy (in the form of vegetable protein). Soy and mushroom provide the meat-like texture, said a San Miguel representative in an e-mail to BusinessWorld, while the mushroom and spices “provide the meaty taste.”

We’ll be the judge of that.

San Miguel sent over a pack of some of the products, including the sausages and nuggets, as well as a shepherd’s pie prepared by the San Miguel Culinary Center.

The nuggets were fried for about two to three minutes, and came out, well, looking like nuggets. Oddly enough, it has a texture firmer and more solid than actual chicken nuggets, closer to the fancy chicken cutlets found in nice restaurants. It’s not quite chicken, because there’s a nutty aftertaste to it that we don’t think appears quite often in a real chicken. It’s also a bit more dry, because chicken nuggets can be a lot juicier. Still, because it looks like it, kind of feels like it, and kind of tastes like it, if I didn’t tell you, you’d never know it wasn’t chicken.

As for the sausages, they approach the taste of a very light chicken frankfurter. It has a smoky-sweet aftertaste that may not be present in real meat, but the blank canvas of vegetable protein may have left more room to explore. It’s also a bit more dry and dense than a regular sausage.

As for the shepherd’s pie, the protein component had a softer, more yielding chew, and the sauce was sweetish, spicy, and satisfying.

For all of these products: if no one told you, you wouldn’t have known it wasn’t meat. The minor differences between the products and real meat (such as the lightness in flavor) don’t feel like real deterrents (some people would even prefer them, I would suppose), and are a small price to pay for allowing an animal to walk freely — for at least one more day.

San Miguel says that the protein content of Veega products is comparable to meat. It is also high in fiber and has no added preservatives, said the San Miguel representative. A press release points out that a 100 gm serving of the nuggets provides protein equivalent to a cup of milk or two eggs, while a serving of the sausages provides protein equivalent to a 170 gm tub of yogurt or 30 gm of nuts. Fair warning though: it’s meat-free and vegetarian, but it is not vegan. In order to get the taste and texture of Veega as close as possible to the “real thing,” the company uses egg whites.

San Miguel still stands as one of the biggest companies dealing in meat, from its fresh meats through Magnolia and Monterey, to the canned corned beef, sausages, and luncheon meats in Purefoods. Asked why a conglomerate as big as that would join the meat-free game, San Miguel noted that people today are looking for healthier and more sustainable choices of food, particularly for protein options. It noted that in the past, the available products on the market were not easily accessible, were too expensive, or were not suited for the Pinoy taste.

Veega, the company claims, answers the consumers’ need for a plant-based protein alternative that is developed specifically for the Filipino taste. Veega comes in ball, minced, nugget, patty, and sausage form. The choice of coming up with the sausage, nuggets, and burger patties was due to the fact that these are some of the most popular quick meals for Filipinos, said the company. The giniling (ground meat) and balls forms, meanwhile, are products that can easily be used in many different recipes.

Plant-based diets have usually been limited to a small number of people who reject meat for various reasons: either due to their health or their ethics. Many more might like to try a life with less meat, but matters of convenience and availability might affect their choices. The entry of a conglomerate might help in mainstreaming the culture, particularly for those who don’t have the time to source and cook meat-free food.

Convenience is addressed by the fact that Veega is fully cooked already and can be further cooked straight from the freezer with no need to thaw out the products. In addition to that, Veega is now available at all leading supermarkets, in the frozen food section, with prices ranging from P99 to P120 for a two serving pack. It will soon be available at the San Miguel online store, The Mall.

It should also be noted that the products have a long shelf-life: a press release says they can stay in the freezer for up to eight months.

For a smaller company also dealing with meat that isn’t meat, check out BusinessWorld’s story: www.bworldonline.com/avoiding-meat-during-the-pandemic/.

RCBC posts P800-M net income in 2nd quarter

RIZAL COMMERCIAL Banking Corp. (RCBC) posted a net income of P800 million in the second quarter on the back of strong trading gains, offset by higher loan loss provisioning.

The bank saw a boost in trading gains last quarter, but this was partly offset by higher provisions that reached P3.6 billion, RCBC Corporate Information Officer Ma. Christina P. Alvarez said in an online press briefing on Wednesday. Comparative data was not available as of writing.

In the first half, RCBC’s net income jumped 17% from a year ago to P3.11 billion, buoyed by double-digit growth in revenues and loans.

The lender’s net interest income jumped 20% year on year to P12.794 billion in the first half, while the bank’s other income also increased by 32% to P8.063 billion. Its gains from trading and foreign exchange activities grew 81% to P5.904 billion.

The central bank’s move to lower interest rates helped the bank bring down its funding costs, Ms. Alvarez said, giving its net interest income a boost during the period and allowing its Treasury department to “maximize the value of the investment portfolio.”

“The quarantine limited and reduced the volume of transactions in the branches and as a result, other income components showed a decline versus last year,” she said.

The lender’s loan portfolio expanded by 18% to P480.282 billion in the semester after posting double-digit increases in all three segments. Its net interest margin rose to 4.3% from 3.8% in the same period last year.

Broken down, RCBC’s corporate loan book, which made up 53% of the total, grew 11% year on year, while consumer loans which cornered a 30% share jumped 13%. Meanwhile, credit taken out by small and medium enterprises (SME), which accounted for 17% of the total, surged 23%.

The lender’s nonperforming loan (NPL) ratio inched up to 2.2% from 2.1% a year ago while its bad loan cover ratio also rose to 95.4% from 78.6%.

The increase in its NPL ratio was largely due to the strong growth in consumer and SME loans, Ms. Alvarez said, adding they do not expect the level to change “significantly” amid the pandemic.

She said the bank has been reaching out to the customers to check on their status and offer payment options to help them keep their accounts active.

“Without any interventions, maybe NPL levels could double, but we’re not going to let that happen because we are working with the customers very closely to fix their cash flow and ensure the healthy condition of their loans,” Ms. Alvarez said.

The bank set aside P5.2 billion as provisions for potential losses in the first half, up 94% from a year ago, amid the ongoing coronavirus pandemic.

“We’ve actually accelerated the provisioning estimate already in the first half so this is already going to be the bulk of it — probably 70% already of what we plan to provide,” she said.

The bank’s operating expenses also inched up 4.8% to P11.01 billion.

Meanwhile, deposits grew 19.3% to P499.42 billion, with a 53% current account, savings account ratio.

“It has been a difficult first half of the year, and we remain mindful of the challenges ahead. Hence, we’ve taken prudent steps to cushion the impact of this pandemic and at the same time, to continue serving our fellow Filipinos better by strengthening our digital capabilities, customer relief programs, and partnership with the government and other financial institutions,” RCBC President and CEO Eugene S. Acevedo said in a statement. 

“We entered this pandemic period with a strong balance sheet. We posted positive growth in all fronts while maintaining a healthy financial statement, with a strong capital base and allowing us to expand our balance sheet doing more business in the coming periods,” said Horacio R. Cebrero, the treasurer and head of RCBC’s Treasury Group.

The bank’s cost-to-income ratio improved to 52.8% as of June from the 62.7% posted the year prior.

Its annualized return on equity and return on assets stood at 7.4% and 0.9%, respectively.

RCBC’s assets grew 7% to P719 billion as of June.

The bank also recorded increased digital transactions, with digital banking enrolments up by 187% and “send cash” transactions rising by 569%.

RCBC had 509 branches and 1,514 automated teller machines as of June.

The bank’s shares rose 2.12% or by 34 centavos to P16.34 apiece on Wednesday from the Tuesday’s finish of P16 each. — Beatrice M. Laforga

Roxas Holdings losses reach P340M

Roxas Holdings Inc. (RHI) posted P340.38 million in attributable net loss during the third quarter of its fiscal year, bigger by 18.4% from a year ago, after a substantial drop in its revenues during the period ending in June.

Revenues during the period fell by 61.9% to P696.12 million, the listed sugar and bioethanol producer’s financial disclosure to the stock exchange show.

For the three quarters ending in June, RHI was able to cut its losses attributable to equity holders of the parent company by 34.2% to P427.77 million, it said on Wednesday.

Revenues during the period, which started October 2019 up to June 2020, fell 23.8% to P4.52 billion compared with P5.93 billion a year earlier.

RHI Chairman Pedro E. Roxas said the company’s nine-month period was hampered by “unexpected consequences of unforeseen events.”

He added that despite the company’s gains from better raw sugar sales in its Central Azucarera de la Carlota, Inc., it was significantly hit by losses from its ethanol units.

“RHI experienced the twin impacts of the eruption of Taal Volcano in Batangas and the global pandemic resulting from the coronavirus disease 2019 (COVID19) but the group showed its resilience in facing these headwinds,” Mr. Roxas said.

Meanwhile, RHI President and Chief Executive Officer Hubert D. Tubio said that overall, the alcohol segment reeled from high feedstock cost, which resulted in a decline in gross profit, coupled by lower production as an effect of lower ethanol demand due to quarantine measures.

However, he said RHI and its subsidiaries cut their operating expenses by 6.5% to P532.63 million for the nine-month period, despite challenges from the COVID-19 pandemic.

RHI Executive Vice President and Chief Finance Officer Celso T. Dimarucut said the company’s efforts to reduce its debts were gaining ground.

“RHI earlier announced that Universal Robina Corp. is interested to acquire our assets in La Carlota City, Negros Occidental. We hope that this transaction for our sugar mill Central Azucarera de la Carlota, Inc. and ethanol facility Roxol Bioenergy Corp. will be completed at the soonest time,” he said.

Proceeds from the asset sale will be used to cut RHI’s debt levels, according to Mr. Dimarucut.

On Wednesday, RHI shares were unchanged at P1.59 each. — Revin Mikhael D. Ochave

PHL firms’ data protection still lacking

By Jenina P. Ibañez, Reporter

COMPANY data protection measures in the Philippines are falling short while risks increase during the pandemic, a business consultancy firm said.

Most Philippine companies comply with data protection laws by appointing officers in charge of data and awareness about these measures have increased in recent years. But data protection remains low among organizations’ priorities, Straits Interactive Pte. Ltd. Country Manager Edwin A. Concepcion said in an online interview on Thursday.

The Singapore-based firm said Philippine data protection measures are improving compared to its Southeast Asian counterparts, but there is “still a lot to be done.”

“(Organizations) are very aware that yes there is a law that they need to comply with, but in terms of priorities it’s not on the list, especially now with our situation in the pandemic.”

The pandemic has heightened the risks on the targeting of individuals and organizations through social media, phishing, whaling, and other forms of social engineering, Mr. Concepcion said.

A whaling attack is the infiltration of an organization by someone pretending to be a senior member, while phishing attackers gain sensitive information by masquerading as a trusted organization.

“What we have seen in the pandemic, we were all forced overnight to go digital and work from home. So a lot of organizations were not actually prepared to respond to these kinds of incidents,” Mr. Concepcion said.

He said the entire organization should be accountable for ensuring data protection, not just the officer in charge. Data protection officers are not always given the appropriate training and funding to protect data, he said.

“We’ve seen a lot of problems because of that…. The company should take it from the point of view of risk management. Of course organizations are pursuing business or pursuing risks or rewards…so it’s very critical that the compliance efforts should, the tone should always come from the top.”

Data protection compliance, he said, must include risk assessments and must be adapted to the business processes of the specific company.

The National Privacy Commission in May released guidelines for data security for work-from-home operations, encouraging institutions to use only authorized software and organization-issued devices.

When using home-based Wi-Fi, the commission said to ensure reliable internet connection and to avoid visiting malicious web pages.

While there has been a spike in interest in learning about data protection during the pandemic, Mr. Concepcion said that this has not yet translated to engagement in data protection services.

“In so far as management priority, that’s a totally different matter. Probably during the pandemic times, that’s quite understandable but again the priority is still not there. We don’t see the top management getting involved in the data protection of their companies,” he said.

“They have very high interest, high awareness, but spurring them into action is a low priority.”

Dining In/Out (08/13/20)

Tefal Cookware sale

SCORE DISCOUNTS from Tefal Cookware during the Lazada Happy Home Sale happening from Aug. 12-14. Get an exclusive 35% off on any of the Clipso Pressure Cookers for limited time slots only on Aug. 12 from midnight to 2 a.m., on Aug. 13 from noon to 2 p.m., and on Aug. 14 from 6 to 8 p.m. And for one day only, on Aug. 14, get a special 50% off on one’s total purchase when one buys two Tefal Day By Day Wokpan 32cm. The Tefal Day By Day Wokpan 32cm is made with an exclusive titanium non-stick coating for extra durability and also features the new Thermo-signal technology that indicates the ideal temperature to start cooking. The Tefal Clipso Pressure Cookers include the Clipso Minut Duo 5L which features a two-cooking selector so the user can choose either to steam soup and vegetables or stew meats and sauces. For larger meals, the Clipso Minut Perfect 7.5L features a cook-control system with a self-activating timer that automatically begins at the ideal temperature for cooking and alerts the user when the meal is ready. Tefal Cookware is also available at Rustans.com, Shopee and leading department stores nationwide.

Crowne Plaza mooncakes available for pre-order

TO CELEBRATE the Mid-Autumn Festival, one may pre-order traditional mooncakes at Crowne Plaza Manila Galleria. The mooncake’s round shape is said to symbolize fondness and togetherness between family members. Order a box of traditional mooncakes featuring flavors that include lotus cream and red bean, consisting of four large or six mini varieties starting at P1,488. A box of four large mooncakes with two egg yolks is also available, priced at P1,688. Individual orders start at P280 per piece while mini versions start at P175 per piece. Place orders in advance until Aug. 31 and get a discount of up to 25%. Redemption of the mooncakes is from Sept. 27 to Oct. 15.

Mang Inasal favorites now come in Family Size

TO ADDRESS the growing demand for group meals for stay-at-home customers, Mang Inasal meals now come in Family Size and are available only via takeout or delivery. Mang Inasal has added to its menu five new offerings: four pieces of Chicken Inasal Paa Large, in either original or spicy variant; three pieces of Chicken Inasal Pecho Large; 10 sticks of Pork BBQ; and Palabok good for four to five servings. Prices start at P199. The Mang Inasal Family Size meals are available for delivery through GrabFood, FoodPanda, and LalaFood. Customers may also call the specific Mang Inasal store for delivery or place their orders online through Mang Inasal Facebook Messenger Chatbot, Jose. Mang Inasal follows strict “no-touch” delivery protocols for the safety of its employees and consumers. For a complete listing of stores that offer takeout and delivery services, visit https://stores.jfc.com.ph/manginasal.html. In a related development, Mang Inasal has also launched its Everyday Sarap Savers — a line of value-for-money meals. It consists of the regular Chicken Inasal, one-stick Pork BBQ and Pork Sisig — all served with one cup of rice — and Palabok. Mang Inasal has also added a third variant to its line of Halo-Halo for merienda. The Mang Inasal Buko Pandan Halo-Halo, which is on a limited run, was introduced in July.

Tablea the focus in Maximum Foodie

FOR MANY Filipinos, the best form of chocolate is tsokolate, a thick, velvety, piping hot beverage that’s been a staple in traditional Filipino breakfasts and a hallmark of many Filipinos’ childhood. The main ingredient of tsokolate is tablea, made of 100% fermented pure cacao that is roasted and ground before being molded into balls or tablets. Asian Food Network host Sashi De learned more about tablea during his trip to the country on Maximum Foodie, which premieres on Aug. 15, 10 p.m. Learn about the “never-before-told” tale of cacao in the Philippines and recipes that can be made with it on Maximum Foodie which airs on the Asian Food Network, available on Sky Cable CH 248, Cignal TV CH 62, and Destiny Cable CH 22.

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