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San Miguel readies issuance of $1-billion perpetual securities

SAN MIGUEL Corp. (SMC) is planning to issue perpetual securities worth up to $1 billion or about P50.72 billion, which it will not offer to the public.

In a disclosure to the stock exchange Thursday, the conglomerate said its board of directors had approved the issuance of the securities either in US dollars or its equivalent in Philippine pesos.

The securities will have a fixed rate, cumulative, and payable on a quarterly basis, and will not be offered to the public.

“The board of directors approved and confirmed the delegation to management of the authority to determine the date/s of issuance, extent of the amount of the issuance, and terms and conditions of the issuances of the perpetual securities,” it said.

SMC did not disclose the purpose of the issuance.

Compared to other bonds, a perpetual bond is a fixed-income security that has no maturity date, therefore its investors may not redeem their investments but are instead paid through a steady stream of interest payments.

In a separate disclosure, SMC said its board had approved reactivating its shelf registration for P60-billion short-term commercial papers, and to change the use of proceeds from its proposed initial issuance of up to P25-billion commercial papers.

To recall, SMC applied with the Securities and Exchange Commission to register P60-billion short-term commercial papers, from which it will issue an initial tranche of P20 billion with an oversubscription option of P5 billion.

Originally, proceeds from the first tranche were to be used to partially finance the redemption of SMC’s preferred shares, the costs of the shelf registration and issuance, and for other general corporate purposes.

On March 20, a few days after the Luzon lockdown began, the company decided to defer the processing of its registration “until such time that conditions stabilize.”

Now, the SMC board has approved delegating its management to “reactivate the registration statement, determination of the offer size, pricing, issuance date and negotiation of fees.”

Proceeds from the initial issuance will be used to pay off short-term loans for working capital and payment of related transaction fees, costs and expenses of the issuance.

Earnings of SMC dropped 91% to P1.09 billion in the first quarter as an impact of the coronavirus disease 2019 pandemic.

Shares in the company at the stock exchange shed 10 centavos or 0.10% to close at P95.90 each on Thursday. — Denise A. Valdez

Philippine Wrestling Revolution offers first pay-per-view fight

BEING stuck at home under quarantine doesn’t have to be boring — not when there is access to some testosterone-filled pro wrestling. Late last year, World Wrestling Entertainment (WWE) inaugural Cruiserweight Champion TJ Perkins went head to head with Jake de Leon of the Philippine Wrestling Revolution (PWR) in an event called PWR Special: Homecoming. Now, one can watch the fight in the comfort of home, when Homecoming becomes available on pay-per-view on May 31.

“PWR Homecoming was built on the dream of being the best possible locally produced pro wrestling show, specifically for the Filipino wrestling fan. We captured that magic back on Oct. 12, 2019 with the biggest show PWR has ever mounted. Homecoming was our biggest show ever in terms of attendance (over 1,000 audience members), and in terms of star power (local and foreign),” said the company through PWR President Red Ollero and Vice-President Jan Lynch Imbat in an e-mail.

The pay-per-view stream will be available on digital release on May 31 via http://streamsessions.live for P500.

As well as the touted match between Perkins and De Leon, other highlights of PWR Special: Homecoming include a three-way dance for the PWR title, with defending champion Quatro fighting his rival Chris Panzer and Ring of Honor and New Japan Pro Wrestling star Jeff Cobb.

“We know that not everyone got the chance to witness Homecoming in person, and not everyone is as familiar with PWR talents — their individual stories. We as a company want people who are fans of wrestling, but not yet of PWR, to see us at the top of our game. The broadcast we’re releasing gives non-Manila based wrestling fans the chance to see the PWR product with all the bells and whistles. We want to reach out specifically to newly acquainted casual fans, as well as followers who couldn’t be there in person (outside of Manila/NCR, inside Southeast Asia),” said the company.

“For our fans who were there that night, the perspective we present through the pay-per-view material is a fully produced wrestling program for digital viewing. This is PWRs first venture into this territory wherein we’re showing what locally produced wrestling can be, with all the dressings of a full-fledged broadcast.” This includes running commentary on the matches by Mr. Ollero; radio DJ, host, and PWR “managerial figure” (managers play a role in pro wrestling too) Stan Sy; ESPN5 talent, E-Sports caster, and current General Manager of PWR, Poch Estrada; and Fil-Canadian wrestler and former PWR champion, The “Beautiful” Billy Suede.

Pro wrestling, as a contact sport and performance in a live audience, will have to take a backseat for now during the pandemic. WWE tried performing to empty seats during the early days of the lockdowns in US cities (and without audience participation, it looked like avant-garde theater), until their own wrestlers started testing positive for the coronavirus.

Asked how the Philippine pro wrestling scene can keep going despite bans on mass gatherings and contact sports, the company said, “PWR is and has always found that taking things to social media to build on the experience of seeing a live wrestling show. Our presence on social media has been our calling card, a large part of how PWR has thrived over the past five years. We’ve used that traction we have in corners of the internet to bring eyes to PWR not just here in the Philippines, but also in places with strong wrestling fan bases like the UK, USA, Japan, and even neighboring SEA countries.” Using the power and reach of the internet in times when people can’t leave their homes, Mssrs. Ollero and Imbat said, “Content production has always been a priority for us — whether through show highlights, wrestler features, user-generated content, and other engagement-driven material as we strive to remain in the hearts and minds of our fans. This is also primarily the reason why we are releasing PWR Special: Homecoming as a way to keep our fanbase interested, even with the lack of shows at this moment.”

“This is the best PWR has looked to date visually, with a professional coverage team backing us in S&S. For fans that want to see what the best of PWR looks like, they have the opportunity to see us in all our glory, streaming online for the first time. It is also the first time we are selling a complete show, top to bottom, on any platform. We are evolving to the point that we can explore the option of having our performances streamed for pay in a time when we cannot perform live.”

PWR acknowledges the urgency during these times, and even though the shows may have stopped, the wrestlers haven’t stopped working). “PWR understands that although the pandemic has put wrestling on hold, there are much more important issues that need to be addressed. The organization and individual roster members have various initiatives to help COVID-19 frontliners in various capacities. With our Mabuhay Ang Wrestling shirt campaign, art commissions, gear auctions, or meal prep for hospitals, 3D printing PPE, there has been a conscious effort from PWR and PWR wrestlers to do our part,” said the company.

PWR Special: Homecoming will be available on digital release this May 31 via http://streamsessions.live for P500. Once payment has been confirmed, a unique video link and access password will be sent via an e-mailed e-ticket for May 31, 10 a.m., Philippine Standard Time. The purchase gives the user all-access viewing of the full PWR Special: Homecoming, of every match that was put on that night. Repeat viewing will also be available for a limited time after May 31. — Joseph L. Garcia

2GO net loss shrinks as it reduces expenses

2GO Group, Inc. cut its net loss attributable to equity holders by 70.5% in the first quarter after it managed to reduce its expenses.

In a regulatory filing, the listed shipping and logistics provider posted an attributable net loss of P108.92 million as of March, from the net loss of P369.03 million in the same period last year.

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 coronavirus disease.

As for the decline in its attributable net loss, 2GO Group said: “Total cost and expenses were lower in the first quarter of 2020 compared to 2019, despite rising transport costs for the logistics business and increased sales of inventory from the distribution business.”

It said fuel prices also decreased by 32% where the listed company had a favorable price variance of P191 million for the quarter.

“All other costs and expenses were generally maintained or reduced due to improvements in efficiencies and focus on controlling cost,” 2GO Group said.

2GO Group reported a decline in revenues by 6% to P5.16 billion during the three-month period. Broken down, the company saw a slight improvement of 0.3% in its shipping business. Sales of goods also grew by 15%, but revenues from logistics and other services went down by 33%.

2GO has three core business units, namely, 2GO Freight, 2GO Travel, and 2GO Supply Chain.

For the first quarter, shipping accounted for 34% and non-shipping accounted for 66% of the group’s total revenue, compared to 32% and 68%, respectively, in the same period in the previous year.

The group said it expects a decline in sales or revenue volumes during the subsequent months beyond the lifting of the modified enhanced community quarantine.

It also said that it has already activated its business continuity plan and “has taken steps to manage the risk of disruption in the value chain both inbound and outbound, including the potential overall economic impact and the effects of the business disruptions in other business entities, some of which are integral to the value-chain of the group.”

Shares in 2GO Group went up 0.54% on Thursday to close at P9.25 apiece.

VLF 2020: Mayang Bubot sa Tag-araw

NORMAN Boquiren’s Mayang Bubot sa Tag-araw — one of the main plays in this year’s Virgin Labfest (VLF) theater festival — tackles the problems encountered in an Ayta community, focusing on how the Indigenous People’s community values ancestral land and livelihood.

It follows two Ayta children whose friendship is tested as they choose different paths. One follows her mother as she seeks the American dream, while the other remains with the community, working against oppression.

The story draws inspiration from the playwright’s experience during immersion activities with community advocates for Indigenous People (IP).

“Ito ay sinulat ko para ibigay sa [IP community] (I wrote it as an offering for the IP community),” Mr. Boquiren told BusinessWorld in a Zoom interview on May 27. He noted that the script went through various changes over three years of visits to the Ayta community.

“‘Yung lupaing ninuno provides para sa kanila. Sila, bilang katutubong Ayta, alam nila na sila ay parang mga isda na inalis mo sa tubig kapag inalis mo kami sa lupang ninuno (The ancestral land provides for them. They, as native Aytas, know that they are like a fish out of water if they are removed from their ancestral land),” Mr. Boquiren said.

“[In the story], may pagta-traydor (there is a betrayal) that happened within the community,” he added, which involves issues that arise when the rich buy ancestral land.

The Indigenous Peoples Rights Act of 1997 (IPRA) states that native title to domain and rights shall be recognized and respected. Section 4 of RA 8371 states that: “All areas within ancestral domains, whether delineated or not, are presumed to be communally owned and, pursuant to the indigenous concept of ownership, could not be sold, disposed nor destroyed.”

ADJUSTING TO VIRTUAL CONNECTIONS
Because of the ongoing COVID-19 pandemic, the Virgin Labfest, the Cultural Center of the Philippines’ festival of new, unstaged one-act plays, is going online this year, with live streamed performances and readings, among others. This has meant that the productions behind the various plays have had to adapt to an unfamiliar digital environment.

This has been a daily challenge for the artists behind Mayang Bubot sa Tag-araw, who have had to figure out how to block scenes and help actors connect with co-actors in the virtual world.

“Isa siyang malawakang at matagal na pangangapa,” the play’s director Mark Mirando said. (It is a long process that we are still groping through.)

Mr. Mirando noted that as a director for documentary theater, part of his job is visiting the communities and talking to people for dramaturgical data, but the quarantine has made this impossible. Instead he turned to Mr. Boquiren and fellow advocates who shared their experiences and insights with the production team.

Mr. Mirando said that the experience with this play has made the production team realize the value of physical connection. “Sobrang halaga niya sa proseso ng pagtutulay ng kwento sa teatro (It is very important in the process of bringing a story to the theater).”

As outsiders, Mssrs. Boquiren and Mirando hope to tell the story of these IPs without romanticising and get the audience to understand the struggles of the IP communities

“No to developmental aggression, protect the IP [community],” Mr. Mirando said.

Opaline Santos, Ji-Ann Lachica, Janna Cortes, and Irish Shane Legaspi make up the play’s cast.

Mayang Bubot sa Tag-araw will stream live on June 12, 5 p.m., and June 23, 2 p.m.

Aside from the plays and staged readings, viewers can also catch the VLF Playwright’s Fair online, with this year’s playwrights talking about their work on June 11-14, 17-20, 25-27 at 8 p.m. Meanwhile, the Virgin Labfest 2020 Writing Fellowship Program will culminate in an online staged reading of the fellows’ works on June 28 at 2 and 5 p.m.

For more details and show schedules, visit https://www.facebook.com/culturalcenterofthephilippines/ and https://www.facebook.com/thevirginlabfest/, or join https://www.facebook.com/groups/VLFTambayan/. — Michelle Anne P. Soliman

Bo’s Coffee says sales rise in some market segments

LOCAL CAFÉ chain Bo’s Coffee saw higher sales in two of its stores during the lockdown even as majority of its stores operated at 30% of their pre-lockdown sales.

“There will be two outliers, two stores that went beyond 100% and 120% from pre-COVID,” Bo’s Coffee Chief Executive Officer Steve D. Benitez said in a webinar with the Philippine Franchise Association on Thursday.

“That was a big surprise to me and my team as well. But I think the most common reason behind that is what class of market does that mall cater to,” he added.

He said the A and B markets would stay home and avoid the malls while the other markets would continue to go out “and that’s because of the circumstances.”

Bo’s Coffee began to gradually reopen its shops for delivery ad pickup in early May. The company has more than 100 branches.

Mr. Benitez said the company plans to “reimagine” its brand to make it more available to more people despite the closed shops, including delivery services.

“Now, you can find Bo’s Coffee in Mini Stops, soon hopefully in 7-Elevens because we now bottle our coffee,” he said.

The company has been reorganizing its employment structure, placing its audit team in the procurement team while there are fewer stores to audit. Some baristas have been moved to delivery services.

Bo’s Coffee gave out full salaries for March and April as well as allowances, but eventually cut some jobs.

Mr. Benitez added that the company has been managing its resources by controlling its cash outflow.

“We also had to preserve out assets because we’re looking forward to reopening as soon as possible and we have to make sure that our assets are in order. First, we decided not to have any capex (capital expenditure) spend. All capex expansion this year has been suspended. And we also had to manage our inventory,” he said.

“One of the things we did is we donated most of these food to the frontliners,” he added. — Jenina P. Ibañez

Pandemic hits San Miguel with 91% profit drop to P1 billion

PROFITS of San Miguel Corp. (SMC) crashed 91% in the first quarter as the coronavirus disease 2019 (COVID-19) pandemic led to a double-digit decline across its business units.

In a presentation to investors Thursday, the conglomerate reported a net income of P1.09 billion in the three-month period, down from P12.83 billion in the same period last year.

Net sales fell 15% to P214.07 billion while income from operations dropped 62% to P11.73 billion.

In a statement, the company pointed to quarantine measures as the primary drag on its businesses. The rising cases of COVID-19 in March led to a Luzon-wide lockdown, which limited mobility and banned liquor across the island.

As a result, SMC’s fuel business Petron Corp. swung to a net loss of P4.9 billion from last year’s net income of P1.3 billion. Aside from the drop in fuel demand because of transportation restrictions, the price war between Russia and Saudi Arabia in March resulted in an oil price drop locally.

SMC’s food and beverage unit posted a net income decline of 21% to P5.8 billion. Sales from beers and spirits fell 18% and 15%, respectively, as alcoholic beverages were prohibited in places under lockdown. This was tempered slightly by a 2% growth in food sales because of higher demand for essential products.

Revenues from power unit SMC Global Power Holdings Corp. dropped 18% to P28.3 billion as off-take volumes fell 3% to 6,600 gigawatt hours. The company attributed it to the deferred start of supply agreements and contract extensions.

SMC Infrastructure, under which are SMC’s toll roads, posted an operating income of P1.8 billion. Consolidated revenues fell 27% to P4.7 billion. The implementation of a lockdown and the subsequent limitation of toll roads to essential vehicles resulted in a 15% decline in volume.

The packaging business generated an operating income of P570 million, down by 31% year-on-year, as its revenues slid 4% to P8.5 billion. It said orders for its products from food and beverage sectors declined, keeping it reliant on the steady demand from health and pharmaceutical customers.

“This is an unprecedented crisis we are in, and many countries all over the world continue to struggle to cope. Like most big and small businesses in the Philippines, we are also affected but we maintained our focus on cost reduction and cash preservation amid the COVID-19 crisis,” SMC President Ramon S. Ang said in a statement.

“Right now, our priority is really to ensure the continuous and efficient delivery of our products and services for the people, strengthen and expand new programs we’ve initiated during this crisis that have worked for us, implement our plan to safely bring our workforce back, and continue to help the country manage the impact of this pandemic,” he added.

Shares in SMC at the stock exchange declined 10 centavos or 0.10% to P95.90 each on Thursday. — Denise A. Valdez

Gen Z’s Archie and Riverdale — Stick to the comics

By Patrick Limcaco

Comic/TV Review
Archie
Archie Comic Publications, Inc.
Riverdale
The CW

ARCHIECOMICS.COM

LIKE any comics, Archie has been relaunched, rebooted or expanded multiple times over the last eight decades. I’ve enjoyed some of the alternate dimensions of the Archie universe, his pals and romantic rivals in good, old Riverdale town. I especially loved when they debuted the horror series Afterlife with Archie, and the bittersweet The Married Life anthology, which portrays Archie and his friends as twenty-something adults grappling with career troubles, shady businessmen, and homophobes. But I love Archie’s high school iteration the best. In the new series written by Mark Waid, Archie’s gang return to Riverdale High, this time set in the contemporary world of tweeting, apps, and ghosting.

In Volume 1, Archie Andrews gets a proper introduction as a bumbling, small-town, teenage boy dealing with girl problems. Archie and neighbor Betty Cooper are still best friends/former flames, his best bud Jughead Jones is still obsessed with burgers (and obviously INTJ), and Reggie Mantle is still mean as a snake, and an occasional friend. Future flame Veronica Lodge’s arrival in town complicates matters with her bratty snootiness. It’s always a pleasure to see unexpected developments that were not portrayed before between characters. The goofy spirit of the comics is still intact. Waid cranks up the characters’ stereotypes and deftly has them reciting 2010s teenspeak, and it all works adorably.

On the small screen, Archie’s familiar town manifests differently, especially when compared to the short lived, 1960’s animated series. Whether you’ve seen a single episode or all four seasons of Riverdale, you’d know that it isn’t the most satisfactory rendering of the Archie characters. If, like me, you’ve been struggling to get through an episode because of the glaring plot holes, cringe-inducing dialogue, and the senseless killing of integral characters, it’s best to abandon all hope and stop watching now.

The first season showed promise. It was fascinating to watch these beloved characters in today’s world, thoroughly reimagined by series creative director Roberto Aguirre-Sacasa. A young, hot version of Miss Grundy engaged in sexual relations with Archie? Sure. A bisexual jock Moose Mason romantically involved with openly gay Kelvin Keller? Very much yes. But I lost interest when the nonsensical plot about the Gargoyle King and the Evernever cult rolled out — it’s not even worth summarizing here.

It’s also indefensible how socialite troublemaker Cheryl Blossom has lost her relevance and just serves as a nonsensical plot device of the writers. I suspect this is done to not let her presence overpower the central story, which is a shame because actor Madelaine Petsch has done a compelling job portraying the character.

What’s most baffling to me is how the television series quickly devolved into a show designed to appeal to viewers with limited attention span, ignoring the richness of human-like traits and relatable stories it could have mined from the source comics. Instead, the screenwriters have amped up the silliness as seasons progressed.

As a long-time reader of the comics, I find Riverdale quite concerning. Gen Z viewers who haven’t had the chance to enjoy the comics version of this fictional town might be turned off by the CW series’ mutilation of the Archie universe. It’s hard to imagine a generation of Archie comics readers discovering Jughead as a self-proclaimed weirdo and beanie hat-wearing introvert that the TV version has made into a crushing bore, who later becomes a bike gang-leading poser and martyr. The show has accomplished what I think would never happen in the comics: make Jughead unlikeable.

Contrast all the TV show’s silliness with the comics. In Waid’s Archie, there are real — or, at least, not implausible — emotional stakes even when certain characters seem to make bizarre decisions, such as when Hiram Lodge sends Veronica to a Swiss boarding school because he had lost the election in Riverdale and because he wanted to protect Veronica from heartache, which then makes Archie go on a Jughead-induced downward spiral. Or when Riverdale’s top nerd Dilton develops a crush on Betty, who turns out to be his ideal partner, all things considered. Their nerdy pairing makes so much sense, I wonder why it took this long to make it happen. I’m excited to see how things will unfold when I continue reading volumes four to six.

Comics Archie also suffers a teenage-sized meltdown and becomes a burger-eating zombie when his girlfriend Veronica appears to have ghosted him. He begins to question his values, and readers feel for this miserable teenager. His heartbreak is compounded by his guilt for failing to throw his parents an anniversary party because he was busy wallowing in the departure of his high school girlfriend. In the TV series, the equivalent of this emotional devastation is when Archie (AJ Kapa) and Veronica (Camila Mendes) tearfully declare “We’re endgame” over a payphone.

TV Archie takes off his shirt a lot in every episode, perhaps as a way to distract from the abandoned plotlines (I’m not complaining, but it’s obviously done to woo more viewers). Watch Riverdale only to see what you’re not missing. The CW series may have ruined the Archie universe for this generation, but Archie in the comics will always be great.

Insurers’ premium income rises

THE INSURANCE industry’s premium income grew in 2019 as all sectors reported increases in premiums written, according to the Insurance Commission (IC).

IC documents showed the industry’s overall premium income increased 4.99% to P304.639 billion in 2019 from P290.151 billion in 2018, based on the unaudited financial reports submitted by life and nonlife insurance firms and mutual benefit associations (MBAs).

The nonlife sector booked the largest increase with total net premiums written of P58.82 billion in 2019, up 15.71% from P50.83 billion in 2018.

Meanwhile, life insurance companies’ total premiums inched up 2.32% to P233.916 billion last year from P228.612 billion a year ago.

The increase was largely due to the uptick in premiums written from traditional life products, which rose 9.23% to P63.783 billion in 2019, offsetting the 0.05% decline in variable life products which ended at P170.132 billion for the year.

Premium income of the MBA sector likewise increased 11.18% to P11.902 billion last year from P10.705 billion the previous year.

The whole insurance industry saw their net income jump 20.38% to P45.12 billion last year from P37.48 billion in 2018.

Net earnings of the life insurance sector rose 25.76% to P36.13 billion in 2019, while the net income of the nonlife sector slipped by 0.49% to P3.403 billion from P3.42 billion.

The industry’s total assets also climbed 13% to P1.785 trillion last year from P1.579 trillion the year prior.

Assets of life insurers rose 13.41% to P1.424 trillion; nonlife firms saw a 10.26% rise year on year to P259.58 billion; while those of MBAs reached P101.06 billion, up 15.02%.

Total investments of the insurance industry also went up by 20% to P1.59 trillion from P1.329 trillion. Investments of all sectors increased, with life firms posting a 19.4% climb to P1.39 trillion in 2019, nonlife insurers surging 31% to P117.5 billion and MBAs posting a 14% rise to P90.77 billion.

Insurance density or the amount of premiums per capita also increased to P2,812 in 2019, up 3.35% from P2,721 the year prior.

However, insurance penetration or the overall contribution of the insurance sector to the economy declined to 1.64% last year from 1.67% in 2018.

The number of insurance companies went down to 129 last year from 131 in 2018, down by one MBA and one nonlife firm.

Meanwhile, the IC reported in a separate statement on Thursday that the total income of the health maintenance organization (HMO) industry dropped 23.76% to P1.26 billion in 2019 from P1.65 billion the year prior on higher healthcare benefits and claims paid by the industry, which consisted 76% of its total expenses for the year.

The HMO industry’s overall revenues, meanwhile, jumped 13.83% to P51.56 billion from P45.3 billion, while its total asset base also grew around 11% to P43.08 billion from P38.96 billion.

“It should be noted that the statistics mentioned were obtained before the onset of the community quarantine due to the 2019 Coronavirus Disease pandemic. The Insurance Commission is hopeful that the economic and financial impact of the pandemic in the succeeding reporting quarter will, to a certain degree, be mitigated by the measures in the various COVID-19-related Circular Letters that we have issued,” Insurance Commissioner Dennis B. Funa was quoted as saying. — Beatrice M. Laforga

Liquor ban weighs on net earnings of SMC food, beverage unit

EARNINGS of San Miguel Food and Beverage, Inc. (SMFB) dropped 20% in the first quarter due to excise taxes and the prohibition of alcoholic drinks during the lockdown period.

In a statement Thursday, the food and beverage arm of San Miguel Corp. (SMC) said its net income for the three-month period stood at P5.8 billion. Consolidated revenues likewise slipped 9% to P69 billion.

The beer division posted an 18% revenue drop to P28.4 billion, driven by a decline in volumes due to a liquor ban in areas under quarantine.

Revenues from the spirits division also fell 10% to P7.5 billion, overturning a 15% growth in sales volumes during January and February.

“While its beer and spirits divisions started the year with good momentum, the declaration of the enhanced community quarantine, together with the imposition of liquor bans across key cities, negatively impacted sales of its alcoholic beverages,” the company said.

Despite the turnout for its liquor businesses, the company’s food division recorded higher sales during the period, posting a 2% growth in consolidated revenues to P33.2 billion.

Revenues from prepared and packaged food grew 16%, lifted by higher demand for processed meats, dairy, spreads, biscuits and coffee. The company said it saw consumers stocking up on essential supplies in the days leading to the lockdown and during the lockdown itself.

Consolidated operating income stood at P8.6 billion, down 20% year-on-year.

“The road to recovery may be long. However, over the last 130 years, we successfully overcame many challenges. We remain confident that with our strong fundamentals and ability to deliver good and affordable products to our consumers, we will overcome this once again,” SMFB President and Chief Executive Ramon S. Ang said in the statement.

The price of shares in SMFB at the stock exchange increased P1.20 or 1.94% to P62.95 each on Thursday. Shares in its parent SMC fell 10 centavos or 0.10% to P95.90 each. — Denise A. Valdez

WFH: COCOPEA’s Joseph Noel Estrada

Since the school year was cut short because of the coronavirus disease 2019 (COVID-19) pandemic, Joseph Noel M. Estrada — Managing Director of the Coordinating Council of Private Educational Associations (COCOPEA) and Managing Partner of the Estrada & Aquino Law, Co. — has been working with government officials to craft a recovery plan for colleges and universities, all while adapting to the work from home setup.

In an e-mail interview with BusinessWorld on May 16, Mr. Estrada shared his experience and some of the lessons he learned from working from home.

The interview has been lightly edited.

What is your preferred online meeting method and why?

For my meetings and virtual lectures, Zoom fits the purpose more. Skype on the other hand, I find more convenient for my media interviews.

Where is your home office? Can you describe it?

I have a room at home where I keep and do everything from my hobbies to work. It’s what is usually referred to as a “mancave.” Prior to COVID-19, I made it a music room, library, and work space at home. I actually thought about this because traffic in Manila was getting worse and instead of wasting time in the car, I worked a lot at home. So it actually prepared me for the long lockdown without me knowing it.

What time do you start your work day now compared to when you actually went to your office? What time does it end? Does working from home make work hours even more fluid now than before?

I start early at 6:30 a.m. and end late around 9 or 10 p.m., sometimes even later. Much like before the lockdown. Except that now, there’s hardly anything that keeps me from working. Before, when I got home from work, even when I could still work, being at home kept my mind off from work and just looking forward to the next day.

How do you take breaks between meetings?

I turn off the video of the Zoom to eat with the family, then come back immediately.

Do you still dress for work or are you more casual in the work from home set-up?

I usually dress up for work, wearing a suit, especially when I attend virtual public hearings in Congress and Senate, and meetings with government officials from CHED (Commission on Higher Education), DepEd (Department of Education), and the IATF (Inter-Agency Task Force for the Management of Emerging Infectious Diseases). But only for the upper half body. Then pajamas or boxers down. But when I meet with my law office partners and associates, I usually just wear home clothes.

Any interesting slip-ups while working from home?

While talking in a live webinar, I got tired sitting down so I put my foot up and the camera caught it, showing my legs and shorts while I wore a suit.

What is the most important lesson you have learned from working from home? Is there anything that you have been doing while working from home that you think you will keep doing after the pandemic?

Prior to the pandemic, while at the office or out for work, half of my mind would wander towards thoughts of home or my kids’ school. Usually, I couldn’t really stay very late in the office because I wanted to catch my family still awake when I got home.

But now, while at home, I can do a lot of work because I know my family, my kids, are just in the other room and it gives me a sense of security as head of the family, and comfort knowing I can just peek into my kids’ room anytime, or have a quick snack with my wife in the kitchen then go back to work anytime.

I think the best lesson which we can all take from this pandemic is focusing on the essentials of life. For me it’s family. Why I work, why I do what I do finds meaning because of them.

I’d probably stay home much more, doing work here rather than at the law office, even after the quarantine has been lifted. — Genshen L. Espedido

BSP to count loans to large firms as reserves

THE CENTRAL BANK will count credit extended to large enterprises as part of banks’ and quasi-banks’ compliance with their reserve requirements to support businesses hardest hit by the pandemic.

Circular No. 1087 signed by Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno on May 27 amended Circular No. 1083 issued on April 22 to count loans to large enterprises as alternative reserve compliance until end-2021 in addition to credit to micro-, small- and medium-sized enterprises (MSME).

BSP Deputy Governor Chuchi G. Fonacier told BusinessWorld last week the revised measures are meant to provide credit and help ease the financial burden of firms heavily affected by the coronavirus disease 2019 (COVID-19) pandemic.

According to the circular which takes effect May 29, peso-denominated loans disbursed for large enterprises, except those granted to banks and quasi-banks, could be counted as reserve compliance.

It added that loans for large firms can be counted as banks’ reserves provided they were granted, renewed or restructured from March 15 onwards.

These should likewise not be pledged or rediscounted with BSP facilities in order to qualify as reserve compliance.

“The loans to large enterprises shall be valued at amortized cost, gross of allowance for credit losses, but shall exclude amounts equivalent to accrued interest and accumulated charges which have been capitalized or made part of the principal of restructured loans to large enterprises,” the circular said.

The BSP said credit to these firms will be considered as alternate reserve compliance if the business is not part of a conglomerate, has an asset size of more than P100 million and has 200 or more employees.

Under the central bank’s criteria, qualified firms should be “directly and adversely impacted by COVID-19,” with (i) its liabilities already going beyond its assets, or has seen at least a 50% drop in gross receipts for one quarter. In either instance, the BSP said the large enterprise is “generally unable to pay its obligations” due to the crisis or as determined by a regulatory agency.

Banking industry leaders welcomed the new relief measure from the central bank.

“This provision will encourage continued bank support to companies that are at the larger end of the MSME segment,” Bankers Association of the Philippines President and Bank of the Philippine Islands President and Chief Executive Officer Cezar P. Consing said in an e-mail.

“By counting lending to these companies (large enterprises) as eligible for reserve treatment, the BSP is facilitating continued bank lending to this important segment of our economy,” he added.

The Chamber of Thrift Banks (CTB) also lauded the central bank’s “innovative monetary relief measures” in aiding embattled business industries.

“The impact of this new scheme will vary and depend on each bank’s risk appetite, liquidity position, and capitalization,” CTB Executive Director Suzanne I. Felix said.

As many industries face tougher times amid temporary shutdowns, drops in earnings, possible loan defaults and difficulty in loan repayments may occur, according to UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion.

“I cannot discount that defaults/difficulty in payments will happen. There will be difficulty along the way, and I think, banks and quasi-banks are very aware of the challenges,” Mr. Asuncion said in an e-mail.

However, he said the BSP’s move to include lending to large firms as reserve compliance during this time is a welcome development to boost liquidity during a crisis.

“All economic actors need to be liquid in a crisis and all would need to sustain a level of liquidity to survive in a crisis. This central bank circular is responding to a need and it is fitting to help firms continue business and employ people eventually,” he said.

The reserve requirement ratio (RRR) of universal commercial banks currently stands at 12% after the BSP reduced it by 200 basis points in April. Meanwhile, the reserve requirement of thrift and rural banks are at four percent and three percent, respectively, while the RRR of nonbanks with quasi-banking functions is at 14%. — Luz Wendy T. Noble

Lopez firms donate equipment to boost PGH’s virus testing

TWO LOPEZ-LED units have pledged to donate P46 million worth of equipment and machines to the Philippine General Hospital (PGH), boosting its capacity to test for the virus causing the coronavirus disease 2019 (COVID-19) pandemic.

First Gen Corp. has provided the University of the Philippines (UP) some laboratory machines that the state hospital can use to conduct RT-PCR (reverse transcriptase polymerase chain reaction) tests for SARS-CoV-2 (severe acute respiratory syndrome coronavirus 2). The said test collects a genetic material from the virus and confirms it through a PCR.

Meanwhile, media network ABS-CBN Corp. is completing its turnover of “BD Max” units, a fully integrated automated molecular diagnostics platform, to PGH to shorten the virus testing period to two hours from four hours.

“Together with assistance from other government agencies and donors, these machines from the Lopez Group will bring us closer to the target of performing 30,000 COVID-19 RT-PCR tests daily,” PGH Director Dr. Gerardo D. Legaspi was quoted in a statement as saying.

PGH, which is under the UP system, is both a COVID-19 referral center and laboratory of government and private hospitals.

It was found that the state hospital was “in dire need” of testing machines to bolster its testing capacity.

The Lopez Group’s donations can help PGH serve coronavirus disease patients, not just in Metro Manila, but also from adjacent provinces, Dr. Legaspi said. — Adam J. Ang

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