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URC sells stake in snacks joint venture to partner Intersnack

Consumer foods maker Universal Robina Corp. said on Friday that its snacks and biscuits joint venture based in Australia and New Zealand is to be fully owned by its partner Intersnack Group.

“We are pleased to be handing full stewardship of these strong businesses to our partner Intersnack, while we continue to focus on other growth segments and geographies across developing markets,” Irwin C. Lee, president and chief executive officer of URC, said in a statement.

The joint venture — Uni Snack Holding Co. Ltd. or Unisnack ANZ — was formed when Intersnack partnered with URC in December 2019 by acquiring 40% of shares in the consolidated businesses of URC Oceania Co. Ltd.

Intersnack will be acquiring the remaining 60% of the shares of Unisnack ANZ for an undisclosed amount. URC said its unit URC Oceania signed the agreement to sell on July 29.

Last year, Unisnack ANZ generated around $450 million through its subsidiaries, Snack Brands Australia and Griffin’s Foods. Both units carry a variety of brands.

Salty snack manufacturer Snacks Brands Australia has Kettle, Thins, Cheezels, CC’s, Natural Chips, Jumpy’s, and Samboy under its belt.

Meanwhile, Griffin’s Foods is a biscuit manufacturer based in New Zealand. It carries Griffin’s, Huntley & Palmers, and Gingernuts, as well as its own brands Nice & Natural, Eta, and Uppercuts.

“Unisnack ANZ, its competent management and great commercial performance, is an excellent strategic fit which will strengthen our market coverage in Oceania region and enrich our existing portfolio and innovation pipeline,” Intersnack Group Executive Chairman Maarten Leerdam said in a statement on Friday.

SECOND-QUARTER PERFORMANCE

In a separate disclosure, URC said its second-quarter net income attributable to owners amounted to P5.05 billion, 43% higher than the P3.54 billion it generated in the same period last year.

URC’s topline for the quarter inched down to P33.92 billion from P33.95 billion.

In the first semester, its attributable net income rose by nearly 46% to P8.05 billion from last year’s P5.53 billion. It said the increase was due to lower finance costs, net foreign exchange losses, and higher income from the sale of its fixed assets.

“We are holding strong in weak market conditions in this crisis; but also using this crisis to prepare and reshape our business for long term sustained value creation,” Mr. Lee said in another statement.

The company’s net sales for the January-to-June period inched up by 1.7% to P68.53 billion from P67.41 billion year on year as its international business units recovered and the company’s commodities segment posted growth.

URC’s agro-industrial and commodities unit saw sales grow by 2% to P16.8 billion compared with last year.

“The Commodity Foods Group’s 13% growth was mainly driven by the contribution of last year’s acquisitions, Central Azucarera de La Carlota and Roxol Bioenergy Corp.,” URC said.

The commodity foods group generated P11.41 billion in the six-month period from P10.11 billion previously. Meanwhile, sales of the agro-industrial group went down by 15% to P5.43 billion from P6.39 billion.

Sales of its domestic and international branded consumer foods (BCF) segment totaled P51.7 billion.

Domestic revenues declined by 7.1% to P29.16 billion “as the Philippine business cycles through a higher base last year from pantry-loading, and as consumer sentiment and trading conditions remained weak.”

International revenues grew by 13.4% to P21.55 billion from P19.01 billion. URC said Vietnam and Thailand were key drivers after recording double-digit growth in the first half.

On Friday, shares of URC at the stock exchange went down by 4.38% or P5.80 to close at P126.70 each. — Keren Concepcion G. Valmonte

Philex income up 86%; PXP losses widen

PHILEX MINING Corp. reported an 86% increase in its second-quarter net income to P599.53 million on the back of sustained levels of metal output and higher revenues.

The listed mining company also said in a stock exchange disclosure on Friday that its revenues for the April-to-June period rose 21% to P2.38 billion. Operating costs and expenses climbed 2.6% to P1.59 billion due to higher excise taxes and royalties from increased revenues.

“The slight increase was tempered by lower non-cash production costs in the second quarter of 2021 amounting to P271 million compared with non-cash production costs in the second quarter of 2020 amounting to P330 million,” Philex Mining said.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter rose 44% to P1.02 billion.

For the first six months of the year, Philex Mining recorded a 173% year-on-year increase in net income to P1.16 billion. Revenues rose 29% to P4.75 billion due to higher realized metal prices.

“The higher revenues are due mainly to the sustained higher realized metal prices for both gold and copper at $1,807 per ounce and $4.21 per pound, respectively,” Philex Mining said.

“The satisfactory execution of the mining plan and mill operations resulted in the production of 13,612 ounces of gold and 6.44 million pounds of copper for the second quarter of 2021, bringing the first half total metal output at 27,025 ounces of gold and 13.21 million pounds of copper,” it added.

Operating costs and expenses for the semester rose 4.5% to P3.24 billion, while its EBITDA for the period increased 80% to P2.03 billion.

“The increase is attributable to increasing production cost brought about by the effects of the pandemic to the supply chain, including logistics and coronavirus

disease 2019 (COVId-19) response undertaken by the company,” Philex Mining said.

SILANGAN PROJECT

Meanwhile, Philex Mining also announced that its board of directors had approved the in-phase development of its Silangan copper and gold project in Surigao del Norte and will be appointing a financial advisor to help in the fund-raising activity to be done as soon as possible.

The mining company disclosed that Silangan’s development will start by the second quarter of 2022, while commercial operations is estimated to begin in January 2025.

“With the in-phase development of Silangan, the capital expenditure requirement will be made in stages, and can be funded from a variety of potential resources including internally-generated cash and potentially through equity and debt from investors and creditors,” Philex Mining said.

Eulalio B. Austin Jr., Philex Mining president and chief executive officer, said the company will be working with its financial advisor to implement the fund-raising activity for the Silangan project’s in-phase development.

“We believe that the recent government pronouncements related to the mining industry will increase the level of interest and confidence of investors and lenders to mining companies. The launch of Silangan will be very timely,” Mr. Austin said.

Philex Mining Chairman Manuel V. Pangilinan said the company is set to benefit from the positive global outlook on metal prices, together with the execution of its plans amid the pandemic.

“In the next couple of months, we set to launch our Silangan Project under an in-phase development approach. Silangan will be an exciting project for Philex,” Mr. Pangilinan said.

PXP ENERGY INCURS MORE LOSSES

In a separate stock exchange disclosure on Friday, PXP Energy Corp. said its

second-quarter net loss attributable to parent company equity holders widened by 51.5% to P18.81 million.

PXP Energy said its petroleum and other revenues for the April-to-June period reached P19.61 million compared to none last year, while total costs and expenses amounted to P36.41 million, up 184.2%.

For the first half of the year, PXP Energy incurred a P23.15-million attributable net loss, down 47.8% from a year ago.

Petroleum revenues reached P19.61 million, up 220.4%, due to a 250% surge in Galoc crude sale price to $63.48 per barrel in the first half from $18.13 per barrel last year.

PXP Energy’s consolidated costs and expenses climbed 37.8% to P54.43 million against P39.50 million in 2020.

“This is brought about by lower petroleum production costs in Service Contract (SC) 14C-1 Galoc at P13.9 million offset by the increase in general and administrative expenses at P40.5 million,” PXP Energy said.

On Friday, shares of Philex Mining fell 0.97% or six centavos to end at P6.14 apiece while stocks of PXP Energy dropped 2.93% or 21 centavos to close at P6.95 each.

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

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

IMI cuts losses despite supply challenges

Integrated Micro-Electronics, Inc. (IMI) swung to a $6.24-million net loss attributable to equity holders of the parent company in the third quarter from a $9.1-million profit $9.64-million profit during the same period in 2020, citing challenges arising from the global supply chain snarls and lockdown restrictions.

In a statement, the manufacturing arm of AC Industrial Technology Holdings, Inc. reported revenues from its contracts with customers went up two four percent to $326.41 million during the July to September period.

“We are still navigating through turbulent waters, but we see an easing of the supply chain challenges in the second half of 2021,” Jerome S. Tan, president and chief operating officer of IMI, said in a statement on Friday.

“Through rigorous collaboration with customers and suppliers, our order books remain robust with high levels of customer demand,” he added. “IMI continues to build its pipeline by winning new projects that should allow us to improve performance as soon as the supply chain finds its balance.”

The company said new program wins for its wholly owned businesses reached an annual revenue potential of $254 million in the first six months, already exceeding what it booked for the entire 2020.

Revenues for wholly owned businesses amounted to $247 million in the April-to-June period. The company noted a revenue backlog due to longer component lead times, forcing the delay of several projects.

“Margins are likewise challenged by efficiency and logistic expenses, particularly with expedited freight costs required to meet customer demand,” IMI said.

Meanwhile, non-wholly owned units generated $72 million for the quarter.

“For the past several months, VIA Optronics had been building up its capabilities and talent pool in preparation for the start of mass production of key automotive projects,” IMI said, adding that one of the projects is anticipated to ramp up in the next three months as a new manufacturing plant opens in Germany.

For the first half, IMI swung to profitability with a net income of $915,000 from last year’s loss of $21.53 million. Meanwhile, revenues grew by 36% to $646.56 million from $476.18 million.

On Friday, shares of IMI at the stock exchange closed unchanged at P8.90 apiece. — Keren Concepcion G. Valmonte

Apex Mining profit up 9.1% on higher metal prices

APEX MINING Co., Inc. recorded a 9.1% year-on-year increase in its second-quarter net income attributable to parent firm equity holders to P210.05 million due to higher metal prices.

The listed mining firm said in a stock exchange disclosure on Friday that its revenues for the quarter reached P1.54 billion, up 86.4%. Gold revenues accounted for P1.43 billion of the total while silver revenues took up the remaining P111.46 million.

Gold sales volume for the quarter rose 79.1% to 16,285 ounces while silver sales were up 0.3% to 47,908 ounces.

Further, the company said realized gold and silver prices for the quarter rose 5.3% and 55.2% to $1,800 per ounce and $26.38 per ounce, respectively.

Due to higher sales, cost of production for the period also rose 157.2% to P1.05 billion from P407.28 million.

For the first six months of the year, Apex Mining registered a 56.6% increase in its attributable net income to P488.86 million. Consolidated revenues in the first half rose 53.7% to P3.09 billion. Gold revenues contributed P2.87 billion of the total while silver revenues shared P214.47 million.

Prices of gold for the first half rose 8.7% to $1,776 per ounce while silver prices climbed 52.8% to $25.63 per ounce.

Gold sales volume reached 33,336 ounces while silver sales totalled 172,662 ounces in the first half of 2021, an improvement from the 23,008 ounces of gold and 125,635 ounces of silver sold last year, due to the availability of logistics amid the pandemic.

The company’s total cost of production for the January-June period rose 64.8% to P2.11 billion from P1.28 billion the previous year due to higher costs for materials used in mining and milling.

Shares of Apex Mining at the stock exchange fell 2.94% or five centavos to end at

P1.65 apiece on Friday. — Revin Mikhael D. Ochave

Holcim swings to profit as sales soar by 65%

BW FILE PHOTO

Holcim Philippines, Inc. posted a net income of P721.39 million in the April-to-June period, reversing its P87.71 million loss in the same period last year as sales surged following the resumption of construction activity.

In a disclosure to the exchange on Friday, the company said it also recorded a 65% net sales growth in the second quarter, generating P6.86 billion this year from P4.15 billion “as demand and prices recovered with the rebound in construction activity.”

“Aside from delivering outstanding results, we also helped our partners build greener, smarter, and for all,” Holcim Philippines President and Chief Executive Officer Horia Ciprian Adrian said in a statement on Friday.

The company said it consumed over 208,000 tons of wastes as its alternative fuels and raw materials in its plants.

Earlier this month, Holcim Philippines inked an agreement with Sinoma CBMIPH Construction Corp. to create drying facilities at its cement plants in Bacnotan in La Union and in Lugait, Misamis Oriental.

This will help the plants reduce fuel consumption and increase cement production, the company said.

“We are also making huge strides in innovation and digitalization with our Easybuild digital platform now used by 99% of our customers for a better experience in transacting with us particularly in placing orders and monitoring deliveries,” Mr. Adrian said.

For the first semester, the company saw its profit improve by nearly four times to P1.63 billion from P413.83 million. Meanwhile, net sales rose by 20% to P13.66 billion from P11.42 billion in the same period last year.

Shares of Holcim Philippines went down by 1.24% or eight centavos on Friday to close at P6.35 apiece. — Keren Concepcion G. Valmonte

Duterte keeps military pact with US

PHILIPPINE STAR/KRIZJOHN ROSALES

President Rodrigo Duterte has restored a military pact with the US on the  deployment of troops for war games, reversing a decision that had caused concern in Washington and Manila. 

His decision to keep the visiting forces agreement (VFA) upholds the Philippines’ “strategic core interests,” his spokesman Herminio L. Roque, Jr. said in a statement on Friday. 

He also cited the clear definition of Philippine-US alliance as one between sovereign equals and the clarity of the US position on its obligations under the MDT Mutual Defense Treaty 

The visiting forces agreement provides rules for the rotation of thousands of US troops in and out of the Philippines for war drills. It has become more important as the United States and its allies contend with an increasingly assertive China. 

Mr. Duterte last year said he was canceling the pact after the US Embassy caneled the visa of his former police chief now Senator Ronald M. de la Rosa. He had suspended the cancelation several times amid a coronavirus pandemic. 

Philippine Defense Secretary Delfin N. Lorenzana said he was unsure why Mr. Duterte had reversed himself, but made the decision after a Thursday meeting with US Defense Secretary Lloyd Austin in Manila. 

The US EMbassy in Manila said the VFA enabled a broader alliance and strengthened security for both nations, as well as the rules-based order that benefited all nations in the Indo-Pacific.  

“A strong, resilient US-Philippine alliance will remain vital to the security, stability, and prosperity of the Indo-Pacific,” Mr. Austin said in a statement released by the embassy. 

“If the VFA will have new terms, then that is a new treaty which must be concurred in by the Senate,” Senator Aquilino Pimentel III said in a Viber message. “Since there is no announcement that there is a new VFA treaty, then we assume that what has been continued is the existing VFA.” 

“We should welcome all efforts to shore up relations with other countries, especially with our allies, as only through global cooperation can we survive from this world-wide crisis,” Leyte Rep. Ferdinand Martin G. Romualdez said in a statement. 

He said keeping the VFA would help strengthen bilateral cooperation between the two countries especially during the pandemic. 

Muntinlupa Rep. Rozzano Rufino B. Biazon said Mr. Duterte’s retraction would benefit national security through “continuing cooperation with our long-standing ally” especially on matters involving the sea dispute with China. 

Members of the Makabayan bloc slammed the decision, seeing it as a move to get the US to support Mr. Duterte in the elections next year. 

“He was not really bent on abrogating the VFA,” Bayan Muna Rep. Carlos Isagani T. Zarate said in a statement. 

“If at all, the prior threat to abrogate is even one way also for President Duterte to appease the United States government and court its favor behind his political plans and for his selected successor in the 2022 elections,” he added. — Bianca Angelica D. Añago, Alyssa Nicole O. Tan and Russell Louis C. Ku 

350 more Filipinos come home

DFA

The Department of Foreign Affairs (DFA) brought home 350 more Filipinos who got stranded in Dubai amid a coronavirus pandemic, it said in a statement on Friday. 

The announcement followed Foreign Affairs Secretary Teodoro L. Locsin, Jr.’s promise that DFA would use its resources to “bring them all home.” 

All repatriates received P10 thousand in aid. They also went through medical protocols and quarantines upon arrival. 

The agency has brought home 3,350 distressed Filipinos from the UAE since the health crisis started last year. 

Meanwhile, the World Health Organization (WHO) asked local governments to double efforts to vaccinate more senior citizens given the threat of a more contagious Delta coronavirus variant. 

In a statement, WHO Philippines said only a quarter of senior citizens have been fully vaccinated, and only 35% have received their first dose. 

Also on Friday, Senator Franklin M. Drilon pushed for the creation of a law that will bar unvaccinated Filipinos from leaving their homes. 

In a statement, the lawmaker said escorting unvaccinated citizens back to their homes is a reasonable exercise of police power to protect public health. 

“In its exercise of police power, the government can impose regulations to promote the general welfare and public interest, including public health,” he said. “That said, the law must be reasonably necessary to accomplish the government’s purpose, and it must not be arbitrary or oppressive.” 

But Senator Aquilino L. Pimentel III said those unwilling to get vaccinated should not be punished because that is their right. “What did these unwilling people do wrong? Nothing at all.” 

The Commission on Human Rights earlier said unvaccinated people should not be discriminated against. — Alyssa Nicole O. Tan and Bianca Angelica D. Añago 

New SC justice applicants named

PHILSTAR

The Supreme Court (SC) has released a list of the 11 applicants vying for the associate justice position. 

Of the 11 applicants, two are from outside the Judiciary, namely Commission on Elections chief Antonio T. Kho, Jr. and Finance Undersecretary Antonette C. Tionko.  

The other applicants are Apolinario D. Bruselas Jr., Amparo M. Cabotaje-Tang, Ramon A. Cruz, Japar B. Dimaampao, Geraldine Faith A. Econg, Jose Midas P. Marquez, Ronaldo Roberto B. Martin, Maria Filomena D. Singh, and Raul B. Villanueva. 

Meanwhile, President Rodrigo R. Duterte has approved the appointment of Jose C. Faustino, Jr. as the new chief of staff of the Armed Forces of the Philippines. 

In a July 29 letter to Defense Secretary Delfin N. Lorenzana made public on Friday, the presidential palace said his appointment would take effect on Saturday. — Bianca Angelica D. Añago

Convicted drug lord dies

A convicted drug lord has died of various illnesses, jail officials said on Friday.  

Vicente Sy died after a cardiac arrest while waiting to be admitted at a hospital in Muntinlupa City, the Bureau of Corrections told reporters in a VIber message. 

Before that, he had difficulty breathing and suffered a stroke. 

Mr. Sy is a witness against Senator Leila M. de Lima, who is facing drug traffkcing charges. 

Justice Secretary Menardo I. Guevarra said Mr. Sy had testified in the criminal cases and had been cross-examined. “His death will not have any impact on the prosecution of the cases,” he told reporters in a Viber group message. — Bianca Angelica D. Añago 

Bicol Int’l Airport expected to launch day operations by Oct. 7

The Transportation department said Friday that the Bicol International Airport, which is now 90% complete, is expected to start day operations on Oct. 7. 

“With non-stop construction ongoing, the Bicol International Airport will be technically operational for commercial aircraft for day operations by 07 October 2021 and will be night-rated by 04 November 2021,” the department said in a statement. 

Transportation Secretary Arthur P. Tugade expressed confidence that the airport project will be completed by September.   

Civil Aviation Authority of the Philippines (CAAP) Director General Jim C. Sydiongco said: “To safely operate the airport, the Department of Transportation and CAAP will continue to be steadfast in pushing for the finalization of (the) necessary activities, not only to support the administration’s Build, Build, Build program, but also to achieve our goal of providing a safer and more comfortable travel experience to Filipinos.” 

Mr. Tugade led the inspection of the airport Friday.  

“Among the facilities inspected were the gateway’s runway lights, arrival area, check-in counters, and pre-departure area,” the Transportation department said. 

The airport lies in the shadow of Mayon Volcano, which officials hope can be promoted as a scenic gateway to the region. 

“The Bicol International Airport is expected to accommodate a total of 2 million passengers per year once it is fully operational,” the department said. – Arjay L. Balinbin 

Exporters want freeze on cargo-handling rate increase, mandatory container weighing

The Philippine Exporters Confederation, Inc. (Philexport) and Export Development Council (EDC) said Friday that the Philippine Ports Authority (PPA) needs to defer approval of a petition for an increase in cargo handling tariffs and passenger terminal fees at the Manila North Harbor.

In a statement, Philexport and EDC also said the PPA should “suspend the mandatory weighing of export containers for the sake of small exporters and enterprises.”

Philexport said a written request has been sent to PPA General Manager Jay Daniel R. Santiago.

The group said the letter “warned that approving the rate hike now and allowing the mandatory weighing of export containers to continue will further add to the difficulties faced by micro, small and medium enterprises and exporters.”

EDC and Philexport said approval of the rate increase requested by the Manila North Harbor Port, Inc. should be postponed “until the required Regulatory Impact Assessment to determine the regulatory burden of the proposal can be conducted.”

They added that the agency should “waive its share in the cargo handling fee to resolve the ‘conflict of interest’ issue around PPA and enhance the competitiveness of the economy.”

The PPA had yet to respond to a request for comment at deadline time.

Virtual public hearings on the petition of the Manila North Harbor Port have been scheduled, with all concerned parties invited to attend the hearing. – Arjay L. Balinbin

PAGCOR returns to profit in first half

BW FILE PHOTO

The Philippine Amusement and Gaming Corp. (PAGCOR) booked a net profit of P79.07 million in the first half of the year, turning around from a year-earlier loss following cost cuts. 

PAGCOR reported a P1.596-billion net loss a year earlier, citing the effects of the 2020 lockdown which saw the suspension of gaming operations.  

Gross income from gaming operations dropped 19.89% to P14.775 billion, missing the P16.988-billion target by 13.03%. 

The government-owned and -controlled corporation, which is required by law to remit 50% of its profits to the national government, remitted P6.988 billion to the Treasury in the first half of 2021, down 19.96% from a year earlier. 

In the first half of 2021, PAGCOR also paid a 5% franchise tax amounting to P738.757 billion, down 19.89% from a year earlier.  

It also remitted P30 million to the Dangerous Drug Board as part of its obligations under Republic Act 9165. 

Excluding gaming taxes and its contributions to the National Government, net gaming income slumped 16.51% to P8.125 billion. 

Meanwhile, expenses in the six months to June fell 29.3% to P7.99 billion.  

Expenses fell for maintenance and other operating expenses, which declined 32.72% to P1.729 billion. 

In May, PAGCOR assistant vice-president for offshore gaming and licensing Jose S. Tria, Jr. said the company expects to collect P7 billion in fresh revenue, assuming eight operators relaunch their businesses as scheduled. - Luz Wendy T. Noble 

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