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PAL pays 80% of $329 million refund requests

Philippine Airlines Inc. (PAL) said it has already paid back 80% of the 15.9 billion pesos ($329 million) in refund requests it received amid the coronavirus pandemic.

The carrier owned by billionaire Lucio Tan has canceled more than 60,000 flights since March, affecting over 1.3 million passengers, PAL said in a statement.

“The loss of revenues deprived us of liquidity to make prompt refund payments, even as lockdown restrictions posed serious staffing and logistical limitations,” it said.

PAL said it has restored nearly 15% of its regular local and international network and plans to ramp up flights as travel and quarantine restrictions ease. Cebu Air Inc., the nation’s largest budget carrier, said last week it has refunded 2.4 billion pesos or half of total refund requests since April. — Bloomberg

[B-SIDE Podcast] Warehousing and logistics: a bright spot in an otherwise battered economy

Thanks to e-commerce and changing consumer habits, the logistics and warehousing sector still expects to grow by 8% in the next three years despite the pandemic. This is a bright spot in an otherwise battered economy that dropped by 16.5% in the second quarter.

Sheila G. Lobien, CEO of property consultancy firm Lobien Realty Group, speaks with BusinessWorld reporter Denise A. Valdez about the impact of new consumer patterns on the future of the industry, and how the Philippines compares with the rest of Southeast Asia—8% growth is good, but that rate is slower when compared to the likes of Vietnam. Ms. Lobien shares insights on what the country has to do to get a bigger slice of the warehousing pie.

TAKEAWAYS

E-commerce and the demand for essentials—food or medical goods—is driving the logistics and warehousing sector, which continues to grow despite a general drop in real estate demand during the pandemic.

“The warehousing industry is one of the luckiest sectors,” said Ms. Lobien, who added that the pandemic has sped up the growth of the logistics and warehousing industry.

To maximize the potential of the logistics and warehousing industry, government must make good on its ‘Build, Build, Build’ projects.

Due to limited space in Metro Manila, rental rates in Central Business Districts have increased to P1,000/square meter from about half that price two years ago. 

Big players such as Ayala Corp. and SM Prime Holdings are eyeing building warehousing facilities outside Metro Manila. Cavite, Bulacan, and Laguna are ideal locations since they are accessible, flood-free, and near the center. 

For warehouse operators to locate in the provinces, they need better infrastructure to ensure the seamless transfer of goods.

The Philippines’s logistics and warehousing sector still has a lot of room to grow to level with its regional peers.

Local demand is fueling the growth of the logistics and warehousing industry. The 8% growth rate cited by Ms. Lobien is slower compared to, say, Vietnam’s warehousing industry, which is booming thanks to government support, lower cost of utilities, better road networks, and low COVID-19 numbers. 

To catch up, the Philippines must address red tape, port congestion, and the sorry state of the country’s roads. The government must also step up its response to the worst COVID-19 outbreak in Southeast Asia.

Meanwhile, warehouse operators have to adapt to e-commerce and employ artificial intelligence and robotics to make the transfer of goods faster.

Recorded remotely on September 3. Produced by Nina M. Diaz, Paolo L. Lopez, and Sam L. Marcelo.

 

Related episode:

BSP says liquidity support hit P1.4T

THE Philippine central bank has  infused P1.4 trillion into the financial system as part of measures to support the economy amid the coronavirus crisis, Governor Benjamin E. Diokno said.

“Overall, the total amount of additional liquidity injected into the system from these collective measures is estimated at P1.4 trillion, equivalent to 7.3% of GDP (gross domestic product),” Mr. Diokno said in a speech at Standard Chartered Bank’s ASEAN Webinar series on Friday.

Domestic liquidity or M3 — which is considered to be the broadest measure of money supply — rose by an annual 14.5% in July to about P13.6 trillion. This was a tad slower than the 14.9% expansion in June.

Mr. Diokno said the Bangko Sentral ng Pilipinas (BSP) knew it had to make “decisive and immediate actions” as early as the first quarter when the coronavirus disease 2019 (COVID-19) outbreak was starting.

“We identified four critical functions within our scope that are imperative to keep the economy afloat: ensuring that sufficient liquidity is circulating in the system; shoring up market confidence and cushioning the slowdown of economic activity; sustaining financial stability and extending relief to financial institutions; and promoting access to and delivery of financial services,” he said.

The central bank has cut policy rates by 175 basis points (bps) this year to help stimulate the economy. This reduced the overnight reverse repurchase, lending, and deposit facilities to record lows of 2.25%, 2.75%, and 1.75% respectively.

The BSP also lowered the reserve requirement for big banks and nonbank financial institutions with quasi-banking functions by 200 bps to 12%. This was followed by a 100-bp reduction in the reserve requirement of thrift and rural banks to 3% and 2%, respectively.

Mr. Diokno also said the central bank has also modified supervisory regulations to encourage lending support to small businesses that are vital to the economy.

The BSP has allowed banks to count their loans to micro-, small-, and medium-sized enterprises (MSMEs) as part of compliance with BSP’s reserve requirements. This is aside from reducing the credit risk weight for these loans.

“As a result, we have seen a 971% growth in the average daily balance of banks’ loans to MSMEs from April to August 2020,” Mr. Diokno said.

He said the central bank is ready to deploy more measures when the need arises.

“Still, our toolkit is far from exhausted, and we stand ready to do more if needed,” Mr. Diokno added.

The Monetary Board will hold its fifth rate-setting meeting on Oct. 1.

Mr. Diokno earlier said the current policy stance might remain unchanged for the next few quarters because the central bank has already moved in anticipation of the pandemic’s economic fallout.

Analysts said the central bank would keep its prudent pause, which started when it kept policy rates unchanged at its Aug. 20 rate-setting meeting.

“As mentioned by Gov. Diokno, they have released P1.4 trillion in liquidity already, and that’s more than a fourth of the national budget. I believe that they will wait, maybe until next year before moving or cutting again,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a text message.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said reserve requirements are also likely to be unchanged although further easing in either rates or banks’ reserves could not be completely ruled out.

“Any additional monetary easing measures would somewhat make up for limited funds for any additional fiscal stimulus,” he said.

President Rodrigo R. Duterte signed the P165-billion Bayanihan to Recover as One Act (Bayanihan II) last week. This is a sequel to the P275-billion Bayanihan I, which was the government’s initial response to the crisis. — Luz Wendy T. Noble

Loans issued by big banks grow at slowest quarterly pace in seven years

AMID THE LIMITED economic activity in the second quarter, the country’s biggest banks became less profitable as they boosted loan loss reserves with soured loans on the rise and issued loans being the slowest in seven years. Read the full story.

Loans issued by big banks grow at slowest quarterly pace in seven years

Big banks face challenging 2nd quarter

By Marissa Mae M. Ramos, Researcher

AMID THE LIMITED economic activity in the second quarter, the country’s biggest banks became less profitable as they boosted loan loss reserves with soured loans on the rise and issued loans being the slowest in seven years.

The latest edition of BusinessWorld’s quarterly banking report showed the combined assets of 46 universal and commercial banks grew 7.56% to P18.165 trillion in the April-June period, from P17.837 trillion a year earlier.

The second-quarter asset growth was faster than 7.06% in the first quarter, but was slower compared with 9.71% a year earlier.

Loans issued by big banks grow at slowest quarterly pace in seven years

The first-quarter figures were based on 41 banks due to incomplete data when banks’ statements of conditions (SOCs) were compiled on June 9. The five U/KBs excluded in the previous quarter were Australia & New Zealand Banking Group Ltd., Bank of America, Bank of China, Chang Hwa Commercial Bank Ltd., Manila branch, and First Commercial Bank Ltd. Manila branch.

Bank loans, which made up about 53.78% of big banks’ assets in the second quarter, totaled P9.770 trillion, up 5.37% from last year’s P9.272 trillion. This is slower than the 9.73% year-on-year growth in the previous quarter, as well as the 10.25% growth a year ago.

The loan growth recorded in the second quarter was the slowest in seven years, or since the second quarter of 2013 when loans grew by 4.38%.

In terms of profitability, the median return on equity (RoE) slipped to 4.89% from 5.17% in the first quarter and 9.13% in the second quarter of 2019. RoE measures how well a company makes use of the money from shareholders to generate income and is calculated as the ratio of net profit to average capital.

BDO Unibank, Inc. continues to have the most assets among big banks at P3.263 trillion, followed by Metropolitan Bank & Trust Co.’s P2.338 trillion and Bank of the Philippine Islands’ (BPI) P2.246 trillion.

BDO likewise issued the most loans in the second quarter at P2.19 trillion, followed by BPI at P1.426 trillion and Metrobank at P1.303 trillion.

Among banks with assets of at least P100 billion, state-run Development Bank of the Philippines (DBP) and Land Bank of the Philippines (LANDBANK) had the fastest year-on-year asset growth at 25.09% and 21.18%, respectively. Bank of Commerce followed with 16.85%.

DBP had the fastest growth in loans issued, with a year-on-year rise of 18.14%, followed by Rizal Commercial Banking Corp. with 12.37% and China Banking Corp. with 10.57%.

BDO had the most deposits with P2.608 trillion. LANDBANK came in second at P1.923 trillion, followed by BPI at P1.764 trillion.

BAD LOANS
Soured debts held by big banks rose during the quarter as nonperforming loans hit P212.283 billion, 12.93% more than the P187.98 billion in the preceding quarter.

Soured loan — gross bad loans in proportion to total gross loans — worsened to 2.02% in the second quarter from 1.93% in the preceding three months.

Similarly, their nonperforming asset ratio — nonperforming loans and foreclosed properties in proportion to total assets — went up to 0.91% from 0.86% in the previous quarter.

As a percent of total assets, foreclosed real and other properties inched down to 0.3%.

Loan loss reserves among big banks totaled some P261.538 billion in the second quarter, more than P191.631 billion in the first quarter and P162.777 billion in the second quarter of 2019.

Banks’ coverage ratio, which is the ratio of the total loan loss reserves to gross bad loans, increased to 123.2% from 101.94% in the previous quarter and 113.2% last year.

Commercial banks’ ability to absorb losses from risk-weighted assets also improved as their median capital adequacy ratio — a measure of bank solvency — rose to 20.65% from 18.33% in the preceding quarter.

The ratio remains well above the regulatory minimum of 10% set by the BSP as well as the international minimum standard of 8%.

BusinessWorld Research has been tracking the financial performance of the country’s big banks on a quarterly basis since the late 1980s using banks’ published statements.

The full version of BusinessWorld’s quarterly banking report will soon be available for download on www.bworldonline.com.

BIR’s notice of discrepancy reinstated

THE Bureau of Internal Revenue (BIR) will now issue a notice of discrepancy to inform taxpayers of their tax deficiencies as part of an audit, replacing the notice of informal conference (NIC).

BIR Commissioner Caesar R. Dulay issued Revenue Regulations (RR) No. 22-2020 dated Sept. 15 amending a provision of RR No. 12-1999 to replace the old notice with the notice of discrepancy to speed up the assessment process.

“No difference, (we) changed the name to be more appropriate because during the informal conference, what happens really is a discussion of findings of discrepancies. So it’s more appropriate to refer to it as notice of discrepancy,” BIR Deputy Commissioner Marissa O. Cabreros said in a text message on Friday.

As part of the agency’s audit process, a BIR officer records the tax discrepancies of a taxpayer in the initial investigation report.

The notice of discrepancy will be sent to a taxpayer that was found to have tax deficiencies, giving them a chance to explain the discrepancy in their tax returns within five up to 30 days from receipt of the notice. This process is called “discussion of discrepancy.”

“lf the taxpayer disagrees with the discrepancy/discrepancies detected during the audit/investigation, the taxpayer must present an explanation and provide documents to support his explanation,” the BIR said.

Ma. Lourdes Politado-Aclan, a director from the Tax Advisory & Compliance division of P&A Grant Thornton, said the BIR should fully evaluate the taxpayer’s records before the notice of discrepancy is issued.

“We hope that the BIR has fully evaluated the taxpayer’s records prior to the issuance of the notice so that the notice will only include the real possible tax exposure of the taxpayer. Otherwise, the initial five-day period to present which shall not extend beyond 30 days will be too short for the taxpayers,” she said in a text message on Thursday.

Ms. Cabreros said the maximum discussion period of up to 30 days is long enough for taxpayers to explain their side.

“Thirty days is quite long, besides taxpayers are in the best position to explain the discrepancies as the data came from their own documents/books/records,” she said in a text message on Sunday.

Ms. Cabreros noted taxpayers can request for an extension, but this will be evaluated based on the merits “to force speeding up disposition of cases.”

However, a taxpayer would be issued a preliminary assessment notice if the BIR does not accept the taxpayer’s explanation and he failed to settle the tax deficiencies.

The preliminary assessment notice can also be issued if the taxpayer does not agree with the results. It will be issued 10 days after the discussions have concluded, upon endorsement of the investigating BIR officer.

The new regulation will take effect on Oct. 1 or 15 days after it was published on Sept. 17

The issuance of notice of discrepancy was reinstated in 2018 after it was removed from the BIR’s audit process in 2013.

When the issuance of the notice of informal conference was removed from the assessment process, taxpayers would receive the preliminary assessment notice immediately after BIR officers found enough basis to audit them for tax deficiencies. — Beatrice M. Laforga

Jewelry that spells out love

By Joseph L. Garcia, Reporter

WHEN times are hard, we all need something soft and comforting to get us through the days.

While the metals and jewels used in jewelry designer Paul Syjuco’s new collection PS ILY are undeniably sturdy, gentle lines and curves soften their effect, making the pieces cozy and pleasant to the eye. Rounded pearls and diamonds add to the effect. In an e-mail to BusinessWorld, Mr. Syjuco said, “I retain the use of noble metals as I am a fine jeweler, but yes, they do represent permanence as well in that gold holds value, diamonds are forever and pearls will forever represent purity.”

According to a press release, the initials “PS” in the line’s name refer not only to Mr. Syjuco’s initials but also to the short version of the Latin post-scriptum, written to end a letter before saying “I Love You” — which is what “ILY” stands for. “It’s an acronym that everyone is familiar with. Something warm and human and comforting,” Mr. Syjuco said. “The line is a play on the concepts of affection and love: through hugs and kisses, through hopes of infinity, promises of eternity, the time we invest in relationships.”

This is then reflected in circular themes (such as concentric circles of gold and either mother-of-pearl or onyx inlay surrounding a single round-cut diamond), diamond-encrusted infinity symbols (seen in rings, bangles, pendants, and earrings), and the O’s in an X and O line (as in “hugs and kisses”). “I wanted to create pieces that were warm, comforting and organic. Even the Xs and Os are drawn in round wires that have a soft appearance, and provide an interesting font. These are available in different gold options but I prefer the warmer tones of yellow and rose gold for most designs,” he said. “It’s meant to be playful, light, and accessible.”

The lightness in this theme belies what most of us have seen in 2020. Mr. Syjuco’s brand has also faced its own issues during the pandemic: “We are affected, as much as everyone, due to restrictions. We lost a lot of time in terms of the annual collection I come out with every October. It usually takes me a year to prepare; from designing to producing on average 100-200 one-off pieces for a collection,” he said. “Since we just started operating our workshop recently, I’m looking at releasing select pieces by the end of the year hopefully. I have a couple of collaborations as well coming out in the short term; it’s everyone helping out each other during these times.

They are still not at 100% capacity and “It seems it’ll stay this way till I don’t know when,” said Mr. Syjuco. The fact that their retail outlets have been closed since the start of lockdown is “quite difficult for something quite tactile as jewelry, which you like to try on first before deciding. There’s a large personal experience that’s lacking. It’s been a challenge. But this new line also hopes to sustain our skilled craftsmen in that through every order is another day of work for them. It’s based on pre-orders so we don’t waste any materials to produce. We are a small operation and that helps us to be agile also in terms of situations.”

One thinks that it’s easy to eschew luxury during times like these, when necessities such as food and healthcare are paramount. One must not forget though, that some of the world’s oldest surviving firms — those that have ridden out pandemics, economic crashes, and wars — are those that deal in luxury: “things we don’t really need.” Asked about the endurance of luxury despite all the odds, Mr. Syjuco said, “Trust is paramount in our business. We’re very thankful to our patrons for the confidence in us; in what we deliver to them. The fact is, in whatever the situation, life will go on. Milestones will happen, birthdays will be celebrated, people will get married. These are the things that people live for or make them feel alive.

“What a privilege it is for us to make our clients’ celebrations more special. Maybe it’s this mindset that makes us want to deliver more than expected. Because it’s the relationships that we value most,” he said.

While throughout history, jewelry has served a purpose during hard times — you can sell them or pawn them if needed — for Mr. Syjuco “It’s a reward for making it this far in unprecedented times. People want to feel happy. People will always need to express themselves. This has always been of more consideration versus intrinsic values.”

The pandemic has of course dampened any plans for grand launches, but has also changed the significance of the collection’s theme of love — developed last year before the COVID-19 pandemic — during these times. “The most crucial realization I had during the past months is that you realize what is most important and meaningful to you. PS ILY is a reflection of where I am personally,” Mr. Syjuco was quoted as saying in a press release. He explained to BusinessWorld, “I believe it has only strengthened the idea even more. In isolation during lockdown, a lot of people must have realized many things. Love must have been something on top of the list. For others, for yourself, to a higher being or power.”

The entire PS ILY is available for pre-order at shop.paulsyjuco.com. E-mail aum@paulsyjuco.com for more inquiries. Follow @paulsyjuco on Instagram.

SEC warns against unauthorized investment scheme of PhilHelp

By Denise A. Valdez, Senior Reporter

THE Securities and Exchange Commission (SEC) is warning the public against engaging in representatives of an investment group called “PhilHelp”.

The regulator issued an advisory on its website saying PhilHelp Administration of Financial Marketing/PhilHelp International Lending Corp. is not authorized to offer investment opportunities.

The group, which runs its own website and uses social media to find investors, is not registered with the commission, the SEC said.

What it has is a business name registration for PhilHelp Administration of Financial Marketing with the Department of Trade and Industry, which does not authorize it to solicit investments from the public.

“PhilHelp is not registered either as a crowdfunding intermediary or a funding portal… [T]hose who act as salesmen, brokers, dealers or agents [of PhilHelp]… may be prosecuted and held criminally liable,” the SEC said.

“[T]he public is advised not to invest or stop investing in any investment scheme being offered by [PhilHelp] and exercise caution in dealing with any individuals or group of persons soliciting investments or recruiting investors for and on (its) behalf,” it added.

On its website, PhilHelp claims to offer loans through peer-to-peer lending, with international operations in Ukraine and Mexico.

Its scheme, as explained by the SEC, guarantees up to 180% profit to lenders by investing a P2,000-P5 million capital. Investors may earn more through direct and indirect referrals as well.

“[T]he lending activity of PhilHelp is a circumvention of the Lending Company Regulation Act of 2007, which requires that those engaged in the business of lending must be a corporation and must secure a Certificate of Authority to Operate as a Lending Company,” the SEC said.

However, PhilHelp denied the accusations of the SEC in a statement on Sunday. It said it reached out to the regulator to ask about the complaint it received that triggered the advisory, but was not given a copy.

“PhilHelp is not a company engaged in lending, nor does it sell securities, morely, and, it does note operate as a crowdfunding intermediary… PhilHelp only offers a virtual marketing platform which provides a ‘Peer-to-Peer Lending’ wherein lenders and borrowers meet,” it said in the statement sent to BusinessWorld.

“We believe that we were single-handedly accused by the said SEC division without doing a thorough investigation,” it added.

Based on the SEC advisory, representatives of PhilHelp may be fined a maximum of P5 million, imprisoned for up to 21 years, or both. Their names will also be reported to the Bureau of Internal Revenue for appropriate penalties.

New skincare lines focus on packing in the ingredients, being sustainable

By Zsarlene B. Chua, Senior Reporter

PRODUCT REVIEW
Britory’s Like Snow Serum for Glass Skin
and Like Snow Cream for Glass Skin
Bioten’s Pink and Green lines

It was a busy week of skincare launches last week with one brand, led and co-owned by a Filipina celebrity, focused on the expertise of Korean beauty technology and cute packaging while another brand focused on presenting a value-for-money line that is also sustainable.

BRITORY
Britory (a portmanteau of “bright” and “laboratory”) is a skincare brand co-owned by Filipina celebrity Bela Padilla and manufactured in Korea. It is focused on giving its users the famed Korean “glass skin” and is packed with as many active ingredients as one small bottle will allow.

“I shot a film in Korea in February… and what I noticed working with the Korean team and actors was they had perfect skin — they had no [visible] pores, they looked amazing with and without makeup. They gave me a lot of tips that we condensed into the two products we’re launching today,” Ms. Padilla said in a digital conference on Sept. 17.

“Glass skin” refers to facial skin being smooth, apparently poreless, and perfect and is a term used by the Korean skincare industry for several years now.

“This project has been brewing for a year now,” she said, before adding that when she met the team for the first time, they talked about having a product that she will like and which is fashioned after the needs of Filipinos as climate conditions between South Korea and the Philippines differ.

The brand launched two products: the Like Snow Serum for Glass Skin (P899 for 35 ml) and Like Snow Cream for Glass Skin (P990 for 50 ml). The serum contains niacinamide, glutathione, arbutin, Neem tree flower extract, walnut leaf extract, Lactobacillus ferment filtrate, and Galactomyces ferment filtrate, while the cream has niacinamide, glutathione, ceramide, Neem tree flower extract, panthenol, and Lactobacillus ferment filtrate as active ingredients.

If it sounds like it’s a mouthful, it’s because it is. In fact, Ms. Padilla’s business partners Dongwoo Kang and Wonyoung Ryu (brand directors), noted that this is the first time a skincare product combined so many active ingredients, but Ms. Padilla insisted that she wanted the products to be as effective as possible to achieve “glass skin.”

“We cut down all the steps of your skincare routine into two products,” she said.

For those uninitiated in the world of skincare, here’s a short rundown of the effects of the active ingredients on the Britory products: niacinamide is meant to smooth fine lines and wrinkles, glutathione is said to control melanin production and “brighten” uneven skin tone, arbutin deals with hyperpigmentation, Neem tree flower extract has anti-inflammatory properties, walnut leaf extract smooths skin texture, Lactobacillus is said to give the skin its glow, Galactomyces is meant to control sebum production, ceramide locks moisture into the skin and protects skin from environmental stressors, and panthenol improves skin hydration.

A good thing about the Britory packaging is it dedicates a portion to discussing what a certain active ingredient does for the skin.

REVIEW
The packaging of the serum is probably the cutest thing this writer has ever seen — it is a glass snowman. Ms. Padilla said they decided on the packaging because the dream is to vacation somewhere with snow, and since they were launching the line near Christmas, she felt it would be appropriate for the holidays. The cream meanwhile is encased in a glass bottle and both products feel expensive and definitely worth displaying on one’s vanity.

“We don’t aim to whiten your skin with our products — we want to make your skin glow,” Ms. Padilla said when asked about the inclusion of glutathione in the product.

Glutathione is an antioxidant that has been commonly used in food supplements and skincare in the Philippines to promote whiter skin, but Ms. Padilla argued that glutathione is a powerful antioxidant that “brightens” one’s skin and makes it glow.

“It doesn’t change the color of your skin,” she said before adding, “all skin colors are beautiful.”

So how do the new Britory products perform? This writer only had access to the products for a few days and while I cannot comment on its effectiveness, I can appreciate that most of the active ingredients in the products — niacinamide and ceramide — are actives that I already use in my daily life.

Still, while Ms. Padilla claims that the products can be used by all skin types, I would beg to respectfully disagree as the products don’t work well with my dry to normal skin. But for people who have combination, normal, or oily skin, the texture of the products would work wonderfully because the cream, in particular, is a water gel type which means it gets absorbed into the skin quickly and leaves almost no residue, while the serum has a quick-dry consistency as well, perfect for people who want to be quick with their routine and get on with their day.

Personally, I want a little more heft and heaviness with my products as my skin needs more moisture than it is able to produce, so instead of cutting down my steps while using the Britory products, I needed to add a face oil here and a heavier cream there to feel that my skin is hydrated.

It all boils down to personal preference. I’m sure people with other skin types will appreciate the line. The price is a bit up there but the promise of having more than five active ingredients and the cute packaging may just make it worth it.

And just a tiny note — simplifying one’s skincare routine is good and all, but please remember to clean your face before plastering on any product and apply sunscreen after using those products.

Britory is available in Lazada and Shopee.

BIOTEN
While Britory focuses on packing as many ingredients into their products as possible, Greek skincare brand Bioten focuses on providing value-for-money products which are also sustainable.

“Nature is our library,” Kelly Erripi, head of the skincare category of Sarantis Group, the company that manufactures Bioten, said in a press conference on Sept. 17.

Bioten is one of the brands under the Sarantis Group and is considered one of their flagship skincare products. Ms. Erripi explained that the brand is meant for people who want good skincare products derived from natural ingredients.

He explained that Bioten selects “100% natural key ingredients” derived from eco-friendly and sustainable sources from around the world and creates products with “100% recyclable packaging.”

“We’re very honest [about what’s in our products],” she said, noting that all Bioten products, from the carton packaging to the jars and bottles, contain information about how much of it comes from “ingredients of natural origin” and that the main ingredients are acquired sustainably.

The glass jars, she explained, are made from 30% recycled material and the boxes are made from paper obtained through responsible sources.

The products are also vegan-friendly because they want “to respect their customer’s lifestyle choices.”

During the launch, the brand focused on its main Skin Moisture range which has two product lines: one crafted for people with dry and/or sensitive skin (the pink line) and another for those with normal or combination skin (the green line). The skin moisture line was created for people aged 20 to 35 years old.

“Right now, as we all know, everyone’s being very, very concerned when it comes to what we put inside, what we actually ingest, and what we actually apply in our skin… aside from that is sustainability, because aside from taking care of our bodies, we also have to take care of the environment,” Angelina Goyena, general manager of iFace (the local distributor of Bioten in the country), said in a release.

The pink Skin Moisture line for dry and/or sensitive skin has as its main ingredient saffron which functions as an antioxidant. It has “skin healing properties and helps increase the skin’s elasticity,” according to a press release. The line includes a micellar water cleanser (P349/400 ml, P99/100 ml), a cleansing milk (P349/200 ml), and a face cream (P349/50 ml).

The green Skin Moisture line for normal/combination skin meanwhile has quince, a type of lime, as a main ingredient for its moisturizing properties. The line includes a micellar water cleanser (P349/400 ml, P99/100 ml), a cleansing gel (P349/200 ml), and a face cream (P349/50 ml).

Ms. Goyena noted that the price points make the product “very, very affordable” and, coupled with its sustainability focus, this attracted them to the brand.

“We felt that it was our responsibility to make this available in the Philippine market,” she explained.

REVIEW
And she’s right: the price points are incredibly attractive and it also makes one feel better about choosing the products because of the sustainability efforts it included.

This writer has been using both the Skin Moisture lines for about two weeks now and though I can’t say for certain whether the products work, I do enjoy using both the Micellar Water Cleanser (the pink one) and the Gel Cleanser (the green one) as part of my two-step cleansing routine whenever I’m not using makeup as I still feel the need to clean my face with an oil-based cleanser after spending a day wearing makeup. The pink face cream is also working pretty well, though I don’t like that it’s heavily fragranced — it has a floral scent that just hits you hard, but I got over it. People with sensitivity to fragrances may want to steer clear of the creams — the brand has other good products that have less fragrance.

At first, I felt that the cream was not working because it took me more than my usual amount of product (a medium-sized dollop, the size of a P1 coin) to spread all over my face but once it sinks in, it does provide me with more than 12 hours of moisture and I didn’t feel the need to reapply moisturizer or spray a face mist at 4 p.m., the time when I feel my other moisturizers have worn out and I need more.

It also wore well under makeup because it’s not greasy and does not move the foundation or concealer around.

While the jury is still out if this is a brand I’ll keep on rotation, Bioten looks very appealing to me right now.

Bioten is available at Watsons, the SM Store, on Lazada, and on Amorfia (an online store).

D&L raises H2 earnings forecast to more than P1B

LAO-LED D&L Industries, Inc. expects to exceed its P1-billion target for second half earnings due to the resumption of business activities since lockdown measures eased.

In a media briefing Friday, D&L President and CEO Alvin D. Lao said the company is observing a steady growth momentum that may push its second semester bottomline higher than the P900 million-P1 billion it initially projected.

“[In the] second half, [earnings] should be more than P1 billion. Indications are moving better than what we thought,” he said.

D&L’s net income stood at P802 million in the January-to-June period, down 43% from last year due to business closures when the coronavirus came in March. The ensuing lockdown brought its net sales down 8% to P10.17 billion.

The island of Luzon has been placed under a strict lockdown in mid-March to contain the spread of the coronavirus. The restrictions have started easing over the course of the months, with Metro Manila being put under a relaxed lockdown since June.

More businesses were allowed to reopen after the imposition of the relaxed lockdown, which brought back demand for D&L’s products, Mr. Lao said. D&L is a manufacturer of plastics, food ingredients and specialty chemicals.

“Next quarter, meaning third quarter, we’ll likely be better than second… Primarily because [our income in] the second quarter is really low,” Mr. Lao said.

“When [the strict lockdown] started, I think people were really afraid to go out and to do things… Now, I think people are more willing to open up. If companies don’t open, they’re not going to survive… So, that’s one big difference we notice,” he added.

With an above-P1-billion net income expectation in the July-to-December period, D&L may see its 2020 earnings hit close to P2 billion, against its 2019 earnings of P2.62 billion.

The company is also expecting earnings to continue growing in 2021. “Definitely, next year will be better than this year,” Mr. Lao said.

D&L is currently expanding operations through its 26-hectare plant in Batangas, which is on-track to finish construction by the end of next year. Once operational, this will support the expected rebound in demand for the company’s products.

Shares in D&L at the stock exchange closed nine centavos or 1.61% down to P5.50 each on Friday. —  Denise A. Valdez

Banana farms to get P263-M fund in fight against Panama disease

THE Department of Agriculture (DA) said it will set aside P262.7 million, partly from stimulus funds, for the banana industry, supporting measures to rehabilitate farms hit by Panama disease and develop disease-resistant varieties.

Agriculture Secretary William D. Dar said around P100 million has been appropriated under Republic Act No. 11494 or the Bayanihan to Recover as One Act (Bayanihan II) to rehabilitate banana farms hit by Panama disease, also known as fusarium wilt.

Fusarium wilt is caused by a soil-borne fungus.

According to the Philippine Statistics Authority, banana exports fell 10.7% year on year to $1.03 billion in the first seven months, with production dampened by fusarium wilt in Mindanao.

“If left unchecked, this will substantially reduce the Philippines’ exports, disrupt trade in the international markets, and cause suffering for banana growers, farmers, workers and their families, which may lead to social unrest,” Mr. Dar said.

An additional P120 million will be allotted to fund the development of the Cardava banana industry in 10 provinces — North Cotabato, Lanao Del Norte, Davao Del Sur, Agusan Del Norte, Samar, Leyte, Apayao, Cagayan, Quezon, and Oriental Mindoro.

The DA said it has set aside P42.7 million from its 2021 proposed budget to support banana research, the distribution of planting materials, and the upgrade of 14 tissue culture laboratories.

In a virtual meeting on Sept. 18, Mr. Dar urged the Pilipino Banana Growers and Exporters Association to match the DA’s P100 million and create a research and development program to address fusarium wilt.

“The research and development program will involve the establishment of a system to ensure banana production via tissue culture of quality resistant varieties and distributing these to farmers to rehabilitate and re-plant disease-damaged farms,” Mr. Dar said.

Separately, the Department of Science and Technology (DoST) has launched a three-year research and development program to examine another banana disease.

The DoST, through the Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (DoST-PCAARRD), will fund research into banana bract mosaic disease (BBrMD), to be carried out by researchers from the University of the Philippines Los Baños.

BBrMD, caused by the banana bract mosaic virus (BBrMV), is commonly found in Saba and Cardava bananas, but can also infect the Cavendish variety.

The disease causes mosaic patterns, discoloration, and streaks on various parts of the banana plant. Severe infection from the virus may lead to failure to flower, reducing yields by 40% to 70%.

“Despite its damaging impact on banana production, there is very limited information on the virus, its extent of infection in the country, and control,” DoST-PCAARRD said.

“To date, no synthetic chemicals and proper management practices are in place to control the disease. There are also minimal BBrMV-free planting materials available to banana farmers,” it added.

The three-year program aims to detect and study the genetic diversity of the virus, assess yield loss and nutrient management, and produce BBrMV-free planting materials, among others.

DoST-PCAARRD said the program hopes to compile incidence and distribution maps of the virus in the Philippines and data on the virus’ genetic relationships, alternative hosts, and yield loss data across various banana cultivars.

“Protocols on BBrMV detection and elimination, and improved micropropagation of BBrMV-free Saba are also expected to be developed,” DoST-PCARRD said.

The virus detection measures that will be optimized by the researchers will be made available to tissue culture laboratories to test for BBrMV in asymptomatic plants, to ensure that planting materials distributed to banana growers are safe to use.

“With the threat of BBrMD infection, the conduct of research and development activities to study and manage the disease is being prioritized to prevent its widespread occurrence,” DoST-PCAARRD said. — Revin Mikhael D. Ochave

New York Fashion Week 2020 trends? Masks, social distancing and voting

NEW YORK – Masks, social distancing and voting were the key themes at New York Fashion Week, as the five-day parade of shows in the COVID-19 era closed on Thursday with designer Christian Siriano presenting his Sarah Jessica Parker-inspired collection at his Connecticut home.

Rebecca Minkoff, who teamed up with US hardware store Lowe’s to show her rock ‘n’ roll line in a digital presentation, incorporated masks into her show after talking with her casting agent.

“He was like, if one model wants to wear a mask for safety reasons, you better believe that all the others are going to want to,” said Minkoff. “It was beautiful. It showcased all the amazing masks we’re gonna be launching.”

Minkoff will also be selling T-shirts encouraging US citizens to vote, ahead of the Nov. 3 presidential election. Part of the proceeds will go to VoteRunLead, an organization which helps people register to vote and trains women to run for office.

Siriano, meanwhile, featured a dress in a bold vote print fabric and several accessories of hats, gloves, and masks.

Minkoff’s collection was done before the COVID-19 restrictions, but she decided a digital show was the only way to go.

“The pandemic hit and right away I knew I had till about May to decide what we wanted to do,” she said.

Minkoff said the brand has seen sales spike over the last few days and that business was up over 7% from last year. Customers still want fashion — even if they’re not going out as much, she said.

In place of the traditional runway show many designers, including Tom Ford and Brandon Maxwell, released look books in order to debut their new lines.  — Reuters

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