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Shangri-la mall’s Gourmet Fest back this weekend

SHANGRI-LA Plaza brings the Gourmet Fest back for a second year with 27 restaurants presenting “the many textures and flavors of [the mall’s] well-curated gastronomic selections,” according to a press release.

“Last year, we got good feedback from our food tenants and our customers with some of our customers asking why we don’t do this more often, so we decided to bring it back,” Lala Fojas, executive vice-president and general manager of Shangri-La Plaza during its launch on Nov. 14.

The food festival runs until Sunday, Nov. 17.

Several tenants from last year’s festival have come back for seconds: Italian restaurant Balboa, Japanese restaurants Sumo Sam and Akira, and Vietnamese restaurant Zao, among others.

Ms. Fojas said that they strive to offer a selection of cuisines from around the world and thus included in the festival are Mediterranean cuisine from Arya, Filipino-Spanish cuisine from Corazon, and Thai food from Thai BBQ and Lemongrass.

Chicken and biscuits for those who want a more familiar and comforting fare are available from Kettle.

For those who want to end their food journey with something sweet, crepes from Le Creperie might do the trick. The EDSA Shangri-La Hotel Bakeshop is also offering chocolates and bread.

Coffee lovers can sample local coffee from Bo’s Coffee Primo or the tried and tested beans from Figaro, while tea lovers can get their fix at Yi Fang.

The Shangri-La Plaza Gourmet Fest runs until Nov. 17 and at the mall’s Grand Atrium. The mall is located in Mandaluyong City. For more information, call 8370-2500 local 597 or visit its social media pages. — ZBC

In pursuit of the ideal investment funds

CFA Society Philippines awards PHL’s Best Managed Funds

By Bjorn Biel M. Beltran, Special Features Writer

The Philippines is still on track to meet its economic targets this year, expanding at a rapid 6.2% gross domestic product growth in the third quarter on the back of bigger government expenditures and robust household spending.

Bolstered by such growth, the local investment community is bursting with activity. In the Philippine Stock Exchange’s 2018 stock market investor profile report, total accounts had reached 1,089,443, 25.4% higher than the 868,810 accounts in 2017. Much of this was due to a 60.9% increase in the total number of online accounts to 625,763 in 2018 from 388,864 a year before.

It stands to reason that many more Filipinos are learning to invest this year. Filipinos are in a great position to take their financial security into their hands, but with the investment landscape as vast and as daunting as it is, newbie investors can easily get lost.

This is one of the reasons why the Chartered Financial Analyst (CFA) Society Philippines is continuing and refining its Best Managed Funds of the Year Awards to recognize institutions that deliver the highest returns and the best value to investors, in spite of different volatilities.

Held at the SMX Convention Center Pasay, the annual event aims to uphold the standards for professionally-managed funds and to acknowledge the institutions which have exemplified the global standards in the finance and investment industry.

“Now on its third edition, the best managed fund of the year continuously work toward recognition of the funds that have consistently performed well looking at both the funds’ returns and risks. To highlight CFA Society Philippines’ commitment to promote standards that protect investors, additional points were accorded to firms that are compliant with the asset manager code of conduct,” Rizchelle S. Manaog, CPAE, program director at the CFA Society, told BusinessWorld.

Consistency and transparency

The winners were assessed by the CFAP Fund of the Year Committee, which reviewed the financial institution’s submission of investment information and fact sheets. What differentiates the Best Managed Funds of the Year Awards is that the committee used the Sortino ratio of each fund based on its five-year and three-year track record to evaluate the best returns for investors.

The Sortino ratio differentiates negative volatility from total overall volatility by using the asset’s standard deviation of negative returns, called downside deviation, instead of the total standard deviation of portfolio returns.

“To me, a well-managed fund is something that consistently delivers value to investors. Investors get the returns that they need without exposing them to unnecessary risk,” Mark Jasson C. Ilao, CFA, CIPM, said.

“The awards were designed to capture that kind of value proposition. For the side of the fund managers, it’s like a badge that they can refer to say that they’re doing something right. On the part of the clients, it assures them that their money is in the right hands,” he added.

Mr. Ilao added that the awards were created partly to emphasize the professional ethical standards that the CFA Institute stands for: that is, creating an environment where investors’ interests come first, markets function at their best, and economies grow. The awards also give investors a baseline to become more aware of the track record of the available funds and the institutions that offer them.

Jerome Go, CIPM, pointed out that there is a tendency for funds to take on additional risks that go beyond the limit of their fund’s investment mandate in a bid to get higher returns, which ultimately hurts the investors in the long run.

“In a way, it’s unethical because you are violating your duties to the client. Each return has a corresponding risk. You’re lucky if you get higher returns by taking unnecessary risks, but if you look at the whole investment cycle those risks will catch up with you. It’s a violation of your duties to your customers. You’re lucky if you turn a profit, but what if you don’t?,” he said.

To further encourage funds to strive for an ideal of consistency and prudence, the CFA Society also added a bonus to institutions that followed the Asset Managers’ Code, which outlines the ethical and professional responsibilities of firms that manage assets on behalf of clients.

These principles and provisions address six broad categories: (1) loyalty to clients, (2) investment process and actions, (3) trading, (4) risk management, compliance, and support, (5) performance reporting and valuation, and (6) disclosures.

As the Philippine economy grows and technology makes investing more accessible to the public, Mr. Go and Mr. Ilao hope that more attention is given to institutions and investment funds that not only provide great returns, but also consistently provide what is best for the public.

“Consistency is one of the things that investors look at. The tendency of people is to chase the winners, not realizing that more often than not these winners are just one-time outperformers. I think it’s better to pay attention to funds and institutions that deliver consistent results over time. They might not be the highest performers year-in year-out, but their consistency is always there,” Mr. Ilao said.

“If more customers start to invest, it will generate more revenues for companies and the companies can hire more people to undergo financial training and invest in better education for the public. It’s a beneficial loop,” Mr. Go added.

The Best Managed Funds of the Year

The CFA Society Philippines gave awards in seven categories, both in peso-denominated and dollar-denominated funds. Only the funds accessible to the public or retail investors were considered.

Here are this year’s winners:

MEDIUM TERM BOND refer to funds using fair value profile and loss valuation purely (FVPL) with maturity duration up to five years.

Peso Medium-Term Bond — Metrobank, Metro Max 3 Bond Fund

Dollar Medium-Term Bond — Asia United Bank, Gold Dollar Fund

LONG TERM BOND refer to funds using FVPL but with maturity duration greater than five years.

Peso Long-Term Bond — United Coconut Planters Bank, Peso Bond Fund

Dollar Long-Term Bond — Chinabank, Dollar Fund

EQUITIES refer to investments that were kept in cash for liquidity or rebalanced with other portfolios. In this award category, only actively managed equity funds were eligible to participate.

Peso Equity Fund — ATRAM, Alpha Opportunity Fund

Dollar Equity Fund — BPI, Global Equity Fund-of-Funds

BPI also bested others on the Balanced Funds Peso category with its BPI Balanced Fund. The mandate for balanced funds (using FVPL) is to invest in a diversified portfolio of bonds and stocks with investment in stocks up to a maximum of 40 to 60% of the fund.

“True to the vision of CFA Society Philippines to advocate integrity and excellence in the investment industry, we are proud to announce this year’s winners for best managed funds,” Cristina Arceo, president and chairman of CFA Society Philippines, said.

“The awards are testament to institutions which put primary importance on caring for the investors’ interests. By pursuing this mission, we help strengthen investors’ trust in the investment industry to achieve a well-functioning capital market and sustain our country’s economic progress,” she added.

BSP stays policy, cuts inflation forecast

By Luz Wendy T. Noble

THE BANGKO SENTRAL ng Pilipinas on Thursday kept monetary policy steady — as signaled earlier and expected by the market — and further cut its inflation forecast for the year.

The BSP’s Monetary Board (MB) maintained benchmark interest rates for overnight reverse repurchase, as well as overnight deposit and lending at four percent, 3.5% and 4.5%, respectively, describing current settings as “appropriate” in the face of weak global economic prospects on the one hand, as well as “firm private domestic spending and sustained progress in policy reforms” that “will serve as a buffer against external headwinds.”

“This is supported by the benign inflation outlook and a firm outlook for domestic economic growth. At the same time, a prudent pause in monetary adjustments will enable the cumulative 75-basis point reduction in policy rates as well as the cut in reserve requirement ratios to continue working their way through the economy,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a briefing Thursday afternoon.

After raising benchmark interest rates by a total of 175 basis points last year in the face of successive multi-year-high inflation rates, the BSP has cut these rates by a cumulative 75 bp so far this year.

After a cumulative 200 bp cut in banks’ reserve requirement ratio (RRR) last year, the BSP has also so far cut RRR by a total of 400 bps in 2019, bringing down the reserve requirements for big banks and thrift banks to 14% and four percent by December, respectively, while rural banks’ RRR will go down to three percent.

BSP Governor Benjamin E. Diokno hinted in previous interviews with ABS-CBN News Channel and Bloomberg that the central bank is “likely done” with rate cuts for this year.

The BSP will conduct its eighth and last policy review for 2019 on Dec. 12.

Asked what would prompt the BSP to resume reducing rates next year, Mr. Dakila replied: “As we always emphasize, we remain data-driven.”

“… [F]actors to be considered will be if you would have to look at the inflation outturn again in relation to the target and then determine what would be the main reason behind the deviation.”

After clocking in multi-year highs to average 5.2% last year which was the fastest in a decade, headline inflation has been on a steady downtrend this year, averaging 2.6% in the 10 months to October against the BSP’s 2-4% target range for 2019.

INFLATION FORECAST SLASHED
Mr. Dakila said on Thursday that monetary authorities further slashed their forecast average for the year to 2.4% from the 2.5% downgraded outlook adopted in September.

At the same time, they kept their inflation forecast for 2020 and 2021 at 2.9%.

“Upside risks to inflation over the near term emanate mainly from potential volatility in oil prices amid the African Swine Fever outbreak on food prices and from potential volatility in oil prices amid geopolitical tensions in the Middle East,” Mr. Dakila said.

“At the same time, weak global economic prospects continue to temper the inflation outlook, as uncertainty over trade policies weigh on global economic activity and demand.”

For Alex Holmes, Asia economist at Capital Economics, “The decision by the central bank in the Philippines to leave its main policy rate unchanged at 4.00% today came as no surprise, and we expect the central bank to leave interest rates unchanged for the rest of 2019.”

“But with growth set to disappoint and inflation likely to remain weak, we expect more easing next year,” Mr. Holmes said in a note sent to reporters.

ING-NV Manila Senior Economist Nicholas Antonio T. Mapa said in a note: “Given a possible miss on the growth objective, we expect Governor Diokno to come out swinging in 2020 with up to 50 bps worth of policy rate cuts to help bolster growth momentum…”

“Although the exact timing may still be in question, we are confident that any form of adjustments, both policy and operational, will be guided by data and will be effectively communicated to the markets.”

Gross domestic product (GDP) growth has only lately begun to pick up from last semester’s muted 5.5% average due to subdued government spending in the wake of late national budget enactment. GDP expansion sped to 6.2% last quarter as a pickup in state expenditures added to the impetus from strong household spending. That fueled the three-quarter average to 5.8% against the government’s 6-7% goal for 2019. Socioeconomic Planning Secretary Ernesto M. Pernia has said the economy will have to grow by 6.7% this quarter if it is to hit the lower end of the government target.

Sought for comment, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a mobile phone message: “There may still be some leeway to ease monetary policy way of a further cut in local policy rates especially after the [US] Fed[eral Reserve] cut… but this could be deferred to the coming months, especially in 2020.”

Meanwhile, Security Bank Corp. chief economist Robert Dan J. Roces said in a text message: “BSP anticipates positive outcome from these cuts with looser credit, meaning more people can borrow at lower interest rates and expansion of the money supply from the RRR cuts that leads to inflation.”

“The government in effect sees more money in circulation which will stimulate the economy, and ultimately result in more money available for spending and is a function of a strong economy.”

Fitch Solutions upgrades PHL growth outlook on stronger state spending

FITCH SOLUTIONS raised its Philippine economic growth forecast, citing stronger economic expansion in the third quarter on faster government spending and strong household expenditures.

Fitch Solutions now sees Philippine gross domestic product (GDP) growth this year at six percent, from 5.8% previously, on the back of a “strong rebound in government expenditure and the continued reliance of household confidence.”

At the same time, it maintained its 2020 growth forecast at 6.1%.

The government has GDP growth targets of 6-7% this year and 6.5-7.5% for next year.

“Looking ahead, government consumption looks set to have a buoyant Q4 and rising domestic confidence is likely to result in continued strength in Philippine private demand. Following the mid-term elections in May, in which President Rodrigo [R.] Duterte secured an even stronger majority, and the early passing of the 2020 budget, we expect public sector expenditure to be a key contributor to maintaining the economy’s positive domestic demand story,” Fitch Solutions said in a Nov. 14 report.

Philippine GDP grew by 6.2% in the third quarter after a muted 5.5% average last semester, taking the year-to-date pace to 5.8%.

“With domestic consumption equivalent to around 77% of the Philippine economy, strength in these areas are key to the overall economic rebound,” Fitch Solutions said.

It also noted that “[b]oth business and consumer expectation surveys [of the central bank] point to strong domestic demand in the final quarter of 2019, with consumer confidence also signalling a more positive outlook for 2020.”

“We believe this is likely in part due to the impact of government stimulus, but also low inflationary pressures and the delayed feed-through effect of the Bangko Sentral ng Pilipinas’ easing measures,” the credit rater said in its report.

Among risks ahead, Fitch Solutions said it expected base effects from last year’s successive multi-year-high inflation rates “to fade over the coming months and also… a possible prolonging of delays in capital investment into 2020 should external demand remain weak.” — Luz Wendy T. Noble

Oct. automobile sales highest so far this year

MOTOR VEHICLE sales in the country continued their recovery in October as the industry recorded its “highest monthly sales” so far this year, the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) reported on Thursday.

Automotive sales have been growing since February, except for a seasonal dip in August.

Data jointly released by the groups showed that overall sales rose 3.8% to 34,397 units in October from 33,150 vehicles in the same month last year, and by 8.1% from 31,820 units sold in September.

CAMPI President Rommel R. Gutierrez described the latest growth clip as a “much-needed boost” for the industry to hit its target for the year. “The current market demand for vehicles along with creative and aggressive sales promotion efforts give us a positive outlook as we aim to sustain the growth trend for the remaining months of the year,” he said in a statement. “We remain positive that our industry target for the end of the year will be achieved as all brands remain committed to provide innovative mobility solutions to the Filipino people.”

Mr. Gutierrez last year projected a 10% sales growth for full-year 2019. Vehicle sales of CAMPI and TMA members dropped for the first time in seven years in 2018, with total sales falling 16% year-on-year to 357,410 units.

Year-to-date, both groups have so far sold 301,761 units, 2.53% more than the 294,311 vehicles sold in 2018.

Auto sales in October last year saw a 9.2% year-on-year drop after higher automobile excise taxes took effect earlier that year.

Broken down, this year’s October sales of commercial vehicles — which accounted for 70.69% of the total — went up by 2.6% to 24,314 units from 23,706 a year earlier. Asian Utility Vehicle sales rose 40.2% to 4,780 vehicles from 3,409 units, while light commercial vehicle sales dropped 3.3% to 18,271 vehicles from 18,896 units.

Passenger cars saw 6.8% sales growth to 10,083 vehicles from 9,444 a year earlier.

Year-to-date, commercial vehicle sales went up 3.8% to 211,361 units, while passenger car sales dropped 0.2% to 90,400 units.

Toyota Motors Philippines Corp. continued to have the biggest market share with 47.69%, selling 16,403 vehicles in October or 9.9% more than the 14,927 units sold a year ago.

It was followed by Mitsubishi Motors Philippines Corp. with 16.01% market share, even as sales dropped by 8.3% to 5,508 units from 6,004 a year ago.

Nissan Philippines retained the third spot with 10.75% market share as vehicle slipped 0.2% to 3,697 in October from 3,703.

Suzuki Philippines Inc. came next with 6.41% market share, growing sales by 11.8% to 2,206 units from 1,974.

Ford Motor Company Phils. Inc. followed with 4.78% market share, with sales up 1.1% to 1,643 from 1,625. — Jenina P. Ibañez

ADB approves $300-M loan for Philippine LGU support

THE ASIAN DEVELOPMENT BANK has approved a $300-million loan from the Asian Development Bank (ADB) to help local government units (LGUs) improve public services and revenue collections as well as reduce the cost of doing business, the regional lender said in a press release on Thursday.

The loan covers the first segment of the Local Governance Reform Program (LGRP).

“The ADB program under LGRP is helping the government provide LGUs with the tools and skills necessary to deliver high-quality public services in an accountable and cost-effective manner,” the statement quoted Robert Boothe, ADB Public Management specialist for Southeast Asia, as saying.

While the program’s final framework was not immediately available, an ADB concept paper published in November last year that spelled out the initial draft of the program showed this segment will support improvements to Republic Act No. 7160, or the Local Government Code of 1991; increasing local autonomy over natural resource revenues; harmonization of rates of local fees and charges; adoption of a new subnational public financial management (PFM) financial reporting platform and establishment of an electronic compendium of local PFM rules and issuances. The loan may also be used to fund a local financing and debt framework or an LGU disaster risk financing framework.

Under the implementation arrangements, the Department of Finance will act as the loan’s executing agency, while the Department of Budget and Management, Department of the Interior and Local Government, and Bureau of Local Government Finance will be the primary implementing agencies.

In 2017, the Philippine government established a three-tiered Standardized Examination and Assessment For Local Treasury program to ensure that local treasury officers are skilled and competent to manage resources.

It also adopted an online LGU client rating system for business permit application and releasing to encourage citizen feedback on LGU performance and service delivery. “Such measures are helping to raise the country’s overall attractiveness for private sector investment,” ADB said.

“ADB supports the Philippine government’s goal of creating a high-trust society, where citizens have confidence in the capacity of local government institutions to deliver services to communities and provide a simpler business environment for private enterprises,” Jose Antonio Tan III, director for Public Management, Financial Sector and Trade at ADB’s Southeast Asia Regional Department, said in the same statement.

“A healthy business environment will lead to more jobs and strengthen the local economy.”

ADB has 68 members, of which 49 are Asian countries.

In October, ADB announced that it plans to invest at least $2.5-3 billion annually to reach $12.1 billion in 2019-2022.

The lion’s share or nearly 60% of the total lending program in that period is meant to finance transportation projects like roads, railways, bridges and elevated pedestrian walkways. — Beatrice M. Laforga

Ayala to invest $237M in Myanmar’s Yoma Group

AYALA CORP. (AC) is investing up to $237.5 million in Myanmar’s Yoma Group, marking the biggest investment by a Philippine company in Myanmar.

AC announced the landmark deal in a statement yesterday, where it said it is taking a 20% stake in both of Yoma’s holding companies — Yoma Strategic Holdings Ltd. and First Myanmar Investment Public Co. Ltd.

Yoma Strategic is listed in Singapore and has interests in property development, construction & piling services, project management and design services.

First Myanmar Investment, on the other hand, is listed in Myanmar and is in the business of financial services, healthcare, real estate and tourism.

AC will become the second-largest shareholder of these two companies, after the Pun family. AC President and Chief Operating Officer Fernando Zobel de Ayala will be nominated to the board of the two companies.

AC Chairman and Chief Executive Officer Jaime Augusto Zobel de Ayala said the partnership with the Yoma Group gives the Philippines’ oldest conglomerate a chance to ride on Myanmar’s growth trajectory.

“We have always believed that ASEAN has massive potential to reap the benefits of Asia’s rise in the global economy. Ayala can definitely move closer to this aspiration by working with a respected and diversified conglomerate in the region,” he said in the statement.

Last month, AC’s power unit AC Energy, Inc. announced plans to form a 50-50 joint venture with Yoma Strategic to develop around 200 megawatts (MW) of renewable energy in Myanmar.

Once finalized by next year, the joint venture is looking to hold at least a 50% stake in Yoma Micro Power (S) Pte. Ltd., a micro power plant and mini-grids builder in Myanmar.

AC said it is keen on tapping Myanmar’s “under-penetrated market” which has been recording a gross domestic product (GDP) growth of more than 6% year-on-year over the past three years. Myanmar’s location — sitting between India and China — is also a factor.

“We are confident that by leveraging our own capabilities and experiences over the last 185 years, Ayala’s partnership with the Yoma Group could certainly help improve the lives of people in Myanmar through purposeful business,” AC President and Chief Operating Officer Fernando Zobel de Ayala said in the statement.

Yoma, chaired by tycoon Serge Pun, has expanded beyond real estate by partnering international companies entering Myanmar. It holds the KFC franchise from Yum Brands Inc and has a joint venture with Mitsubishi Motors Corp. to distribute the Japanese automaker’s vehicles.

“This partnership reflects Ayala’s faith in the future of Myanmar,” Mr. Pun, executive chairman of both FMI and Yoma Strategic, said in the statement.

Earlier on Thursday, Yoma Strategic reported a net loss of $44.2 million its the second quarter through September, versus a profit of $18.8 million a year earlier.

AC posted an attributable net income of P46.16 billion in the first nine months of the year, almost double from last year, due to higher returns from its power, banking and telecommunications units. — Denise A. Valdez with report from Reuters

GT Capital doubles Q3 profit

By Denise A. Valdez, Reporter

EARNINGS of GT Capital Holdings, Inc. more than doubled in the third quarter due to a one-time gain from the redemption of shares in Property Company of Friends, Inc. (PCFI).

The Ty family-led conglomerate reported an attributable net income of P7.99 billion in the July to September period, up 110% from last year. Total revenues inched up 3% to P58.58 billion as expenses were 1% lower at P50.92 billion.

A P3.37 billion profit from the redemption of shares in PCFI in exchange for property P1.8 billion in cash helped boost the company’s bottomline.

Excluding the one-time gain in PCFI, the company’s core net income attributable to equity holders still grew 43% to P3.47 billion.

For the nine months to September, GT Capital’s attributable net income rose 40% to P15.33 billion. Revenues picked up 3% to P159.13 billion as expenses edged 2% higher to P139.79 billion.

Core net income attributable to equity holders jumped 20% to P12.39 billion during the nine-month period.

By business segment, GT Capital’s automotive operations contributed P138.18 billion in the nine months, 4% higher from last year. The improvement came from 0.4% higher wholesale volume at 117,597 units, where the retail sales of Toyota Motor Philippines Corp. (TMP) grew 4.3% against industry’s 1.7%.

The attributable net income of TMP ended at P7.34 billion or 13% higher from last year. Sumisho Motor Finance Corp. added P282.6 million to improve 54%, while Toyota Manila Bay Corp. generated P165.3 million to rise 29% from last year.

The banking segment, operated by Metropolitan Bank & Trust Co. (Metrobank), posted an attributable net income of P21.6 billion or 29% higher from last year. The growth is due to the 10% increase in net interest income to P56.2 billion, along with the 7% growth in loans from the commercial segment and 5% growth in loans from the consumer segment.

Contributions from the company’s shares in Metro Pacific Investments Corp. (MPIC), which it classifies under the infrastructure and utilities segment, dipped 5% to P1.80 billion. It traced the decline to higher expenses as foreign exchange losses grew.

GT Capital’s life and non-life insurance business, operating under Philippine AXA Life Insurance Corp., had a consolidated net income of P1.87 million or 12.6% lower from last year due to lower sales from market volatility.

In a briefing in Taguig City yesterday, GT Capital President Carmelo Maria Luza Bautista said the company expects to continue recording growth towards the end of the year, supported by the improving gross domestic product, benign inflation, higher infrastructure spending, favorable exchange rate, increasing consumer confidence and lower interest rates.

“All told, it would seem that these are ideal situations… We expect to end 2019 strong and have a good momentum moving into 2020,” he said.

Shares in GT Capital at the stock exchange lost 12 points or 1.33% to close at P890 each on Thursday.

AGI earnings increase by 12% in Q3

THE 547-room Savoy Hotel Mactan Newtown is located within Megaworld Corp.’s 30-hectare Mactan Newtown township in Lapu-Lapu City, Cebu. This brought the Alliance Global Group Inc.’s total hotel room count to over 6,100 keys to date.

ALLIANCE Global Group, Inc. (AGI) reported its attributable net income grew by 12% to P4.7 billion in the third quarter, thanks to robust contributions from its real estate, gaming, liquor and fast food businesses.

A regulatory filing showed the holding company of tycoon Andrew Tan turned over P44.19 billion in revenues during the July to September period, higher by 19% year-on-year.

For the January to September period, AGI said its net profit attributable to owners rose 6.6% to P12.82 billion, on the back of a 17% jump in revenues to P127 billion.

Megaworld Corp. recorded a 14% growth in income attributable to owners to P12.8 billion in the nine-month period.

Real estate sales jumped 11% to P30.7 billion, on sales from Megaworld, Global Estate Resorts, Inc., Empire East Land Holdings, Inc. and Suntrust Properties, Inc. brands.

“Sales reservations reached P114.1 billion in the first nine months of the current year, bolstered by P58.7 billion added inventory,” the company said.

Emperador, Inc. saw a 2.6% increase in attributable net income to P5.27 billion in the nine months ending September, on 11% rise in revenues to P33.72 billion. In the third quarter alone, Emperador recorded a P2 billion (up 34%) profit from P12.4 billion in revenues (up 19%).

Travellers International Hotel Group, Inc., the operator of Resorts World Manila, saw its net income attributable to owners plunge 82% to P786 million in the January to September period.

Golden Arches Development Corp., which holds the master franchise for McDonald’s in the Philippines, reported a 19% increase in attributable net income to P1.16 billion as of end-September.

GADC’s revenues rose 13% to P23.2 billion, as systemwide sales in the third quarter went up 16%, while same-store sales grew by 6% year-on-year.

“We continue to work hard to deliver the strong performance across all our business segments. We undertake product innovations, capacity expansions and even pursue digital transformations in order to order to further strengthen our diversified portfolio in this fast-changing market. We believe these deliberate strategies will soon bear fruit, allowing our Group to show accelerated growth in future earnings,” Kevin L. Tan, chief executive officer of AGI, said in a statement.

Jollibee to bring Tim Ho Wan chain to China

A SUBSIDIARY of Jollibee Foods Corp. (JFC) is forming a $13-million joint venture with Singapore’s Dim Sum Pte. Ltd. (DSPL) to bring the Tim Ho Wan brand in China.

In a disclosure to the stock exchange yesterday, JFC said its wholly-owned subsidiary Golden Plate Pte. Ltd. has signed a joint venture agreement with DSPL on Wednesday.

The joint venture will now be incorporated, after which it will enter a unit franchise agreement with Tim Ho Wan Pte. Ltd. to operate Tim Ho Wan stores in Shanghai and other Chinese cities.

JFC’s Golden Plate will infuse up to $7.8 million in the joint venture to hold a 60% stake, while DSPL will own the remaining 40%.

DSPL, a wholly-owned subsidiary of Titan Dining Holdings Pte. Ltd., owns and operates Tim Ho Wan stores in Singapore.

“The Tim Ho Wan deal provides JFC with an excellent opportunity to operate and expand one of the known Michelin-starred dim sum restaurant chain brands,” JFC said in its disclosure.

“The (joint venture) is not expected to have an immediate material impact on the JFC Group’s sales, profitability and balance sheet as it is not planning for an aggressive expansion in 3 to 5 years. The first few years will be focused on developing and building the store model and economics,” it added.

In May last year, JFC announced its wholly-owned subsidiary Jollibee Worldwide Pte. Ltd. was investing S$45 million in private equity fund Titan Dining LP, which has a binding agreement with the Tim Ho Wan franchiser in Asia Pacific.

JFC Founder and Chairman Tony Tan Caktiong said then the investment in Titan — which is equivalent to 45% of its total fund size — is seen to give JFC an opportunity for “very healthy financial returns” in the long term.

PROFIT DIPS IN Q3
Meanwhile, JFC reported yesterday its attributable net income in the third quarter fell 8% to P1.87 billion. Revenues increased 7% to P43.18 billion during the period, but was weakened by the 8% rise in direct costs to P36.75 billion.

The company said in a regulatory filing the bigger costs were brought by higher prices of raw materials and the expansion of its freight and store network.

Year to date, the company’s attributable net income dropped 26% to P4.53 billion. An 11% rise in direct costs to P107.61 billion weighed on revenues which grew 9% to P127.21 billion.

JFC opened 290 stores in the first nine months of the year, where 175 are in the Philippines and 115 are abroad. This brings the company’s total store count 34.7% up to 5,863 stores as of end-September.

Among the brands JFC controls are Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, Burger King, PHO24, Yonghe King, Hong Zhuang Yuan, Dunkin’ Donuts, Highlands Coffee, Hard Rock Cafe, Smashburger and The Coffee Bean & Tea Leaf. — Denise A. Valdez

Signal Rock, Liway get most Luna Awards nominations

THE FILM Academy of the Philippines (FAP) and the Film Development Council of the Philippines (FDCP) have announced the nominees for the 37th Luna Awards, to be given on Nov. 30 at the Maybank Performing Arts Theater in Bonifacio Global City, Taguig.

Chito Rono’s Signal Rock and Kip Oebanda’s Liway lead the pack with nine nominations each including the top awards: Best Motion Picture and Best Director.

Aside from the top awards, Signal Rock is also nominated for Best Actor for Christian Bables, Best Supporting Actor for Mon Confiado, Best Supporting Actress for Daria Ramirez, Best Screenplay for Rodolfo Vera, Best Sound for Albert Michael Idioma and Alex Tomboc, Best Production Design for Mark Sabas, and Best Cinematography for Neil Daza.

Based on a true story from the 1990s, Signal Rock is about Intoy who looks after his family in Biri, Samar. He communicates with his sister who is overseas by going to unusual rock formations on an island. Signal Rock won the 2018 Pista ng Pelikulang Pilipino Special Jury Prize, Critics’ Choice, and Best Performance by an Actor for Mr. Bables.

Liway — based on the experiences of Mr. Oebanda and his mother as Martial Law captives — received nominations for Best Actress for Glaiza de Castro, Best Supporting Actor for Soliman Cruz, Best Screenplay for Oebanda and Zig Dulay, Best Production Design for Aped Santos, Best Cinematography for Pong Ignacio, Best Musical Score for Nhick Ramiro Pacis, and Best Editing for Chuck Gutierrez.

The film tells the story of a boy named Dakip who was born in a detention cell because his parents were political detainees. Dakip’s world is a prison camp that houses other political prisoners as well as criminals. In the 2018 Cinemalaya Independent Film Festival, Liway won the Audience Award in the Main Competition, a Special Jury Commendation, and a Special Jury Prize for Acting for Kenken Nuyad who portrayed Dakip.

Other top nominees for this year’s Luna Awards are Erik Matti’s Buy Bust and Jerrold Tarog’s Goyo: Ang Batang Heneral with eight nominations each.

Buy Bust and Goyo were both nominated for Best Motion Picture alongside acting awards and a Best Director nod for Mr. Matti.

Nominees for the Luna Awards are voted for by their peers; nominees per category are voted for by industry professionals from the same sector.

Special Awards will also be given. The late directors Wenn Deramas and Soxie Topacio will receive the Lamberto Avellana Memorial Award. Veteran actress Nova Villa will also be receiving the Manuel de Leon Exemplary Award, while Regal Films matriarch Lily Monteverde will be given the Fernando Poe, Jr. Lifetime Achievement Award.

Below is the full list of nominees:

• BEST MOTION PICTURE — Liway (Exquisite Aspect Ventures, VY/AC Productions, and Cinemalaya); Buy Bust (Viva Films and Reality Entertainment); Signal Rock (CSR Productions); Goyo: Ang Batang Heneral (TBA Studios and Globe Studios); Gusto Kita with All My Hypothalamus (Epicmedia Productions, CineFilipino, Unitel, and Cignal Entertainment)

• BEST DIRECTOR — Chito Roño (Signal Rock); Dwein Baltazar (Gusto Kita with All My Hypothalamus); Erik Matti (Buy Bust); Kip Oebanda (Liway); Irene Villamor (Meet Me in St. Gallen)

• BEST ACTOR — Eddie Garcia (Rainbow’s Sunset); Christian Bables (Signal Rock); Nicco Manalo (Gusto Kita with All My Hypothalamus); Daniel Padilla (The Hows of Us); Dingdong Dantes (Sid & Aya)

• BEST ACTRESS — Angelica Panganiban (Exes Baggage); Glaiza de Castro (Liway); Ai Ai delas Alas (School Service); Anne Curtis (Sid & Aya); Agot Isidro (Changing Partners)

• BEST SUPPORTING ACTOR — Arjo Atayde (Buy Bust); Soliman Cruz (Liway); Carlo Aquino (Goyo: Ang Batang Heneral); Epy Quizon (Goyo: Ang Batang Heneral); Mon Confiado (Signal Rock)

• BEST SUPPORTING ACTRESS — Aiko Melendez (Rainbow’s Sunset); Daria Ramirez (Signal Rock); Max Collins (Citizen Jake); Nova Villa (Miss Granny); Sunshine Dizon (Rainbow’s Sunset)

• BEST SCREENPLAY — Carmi Raymundo, Gillian Ebreo, Crystal San Miguel, and Cathy Garcia-Molina (The Hows of Us); Rodolfo Vera (Signal Rock); Rodolfo Vera and Jerrold Tarog (Goyo: Ang Batang Heneral); Irene Villamor (Meet Me in St. Gallen); Zig Dulay and Kip Oebanda (Liway)

• BEST SOUND — Albert Michael Idioma and Alex Tomboc (Goyo: Ang Batang Heneral); Albert Michael Idioma and Alex Tomboc (Signal Rock); Whannie Dellosa and Steven Vesagas (Buy Bust); Axel Fernandez (Gusto Kita with All My Hypothalamus); Jason Conanan, Mikko Quizon, and Kat Salinas (Meet Me in St. Gallen)

• BEST PRODUCTION DESIGN — Michael Español and Roma Regala (Buy Bust); Aped Santos (Liway); Mark Sabas (Signal Rock); Roy Lachica (Goyo: Ang Batang Heneral); Maolen Fadul (Gusto Kita with All My Hypothalamus)

• BEST CINEMATOGRAPHY — Neil Derrick Bion (Buy Bust); Neil Daza (Gusto Kita with All My Hypothalamus); Pong Ignacio (Liway); Neil Daza (Signal Rock); Tey Clamor (Ang Babaeng Allergic sa Wi-Fi)

• BEST MUSICAL SCORE — Jerrold Tarog (Goyo: Ang Batang Heneral); Malek Lopez and Erwin Romulo (Buy Bust); Emerzon Texon (Meet Me in St. Gallen); Nhick Ramiro Pacis (Liway); Emerzon Texon (Ang Babaeng Allergic sa Wi-Fi)

• BEST EDITING — Jay Halili (Buy Bust); Marya Ignacio and Noemi Paguiligan (The Hows of Us); Maynard Pattaui and Edlyn Tallada-Abuel (Ang Dalawang Mrs. Reyes); Chuck Gutierrez (Liway); Jerrold Tarog (Goyo: Ang Batang Heneral)

SPECIAL AWARDS

• Fernando Poe, Jr. (FPJ) Lifetime Achievement Award — Lily Monteverde

• Manuel de Leon Award for Exemplary Achievements — Nova Villa

• Lamberto Avellana Memorial Award — Directors Wenn Deramas and Soxie Topacio — Zsarlene B. Chua

JG Summit reports 2% drop in Q3 bottomline

JG SUMMIT Holdings, Inc. posted a 2.4% drop in net income attributable to equity holders of the parent company in the third quarter, dragged by lower revenues from its petrochemicals business and higher expenses.

In a regulatory filing, the holding company of the Gokongwei family reported its bottomline fell to P4.8 billion in the three months ending September, from P4.95 billion a year ago.

Third quarter consolidated revenues jumped 12% to P81.16 billion. The bulk came from its food business under Universal Robina Corp. (URC) which saw a 6% rise to P32.7 billion in revenues.

Air transportation business, through Cebu Air, rose 17% to P18.92 billion, while real estate and hotels, through Robinsons Land Corp. (RLC), soared 79% to P16.37 billion. The petrochemicals business’ revenues fell by 32% to P7.5 billion.

For the January to September period, JG Summit recorded a 50% increase in attributable income to P22.23 billion.

“Increase is mainly due to double-digit income growth in our airline and real estate businesses coupled by the foreign exchange translation gains and increase in equity in net earnings of associates particularly from United Industrial Corporation Limited (UIC),” the company said in a regulatory filing.

Revenues went up 11% to P239.6 billion as of end-September, driven by higher contributions from URC, Cebu Air and RLC.

URC’s revenues rose 5.8% to P99.78 billion, fueled by a 9% increase in branded consumer foods domestic sales and 42% higher sales from feeds business.

Cebu Air’s revenues jumped 18% to P63.62 billion, on a 10% growth in passenger volume and 7% rise in average fares.

For RLC, revenues surged 40% to P31.2 billion, thanks to the P8.84 billion contribution from the sale of condominium units from Phase 1 of a residential project in China.

JG Petrochemicals Group saw its revenues drop by 19% to P26.12 billion “primarily due to decrease in average selling prices and volumes sold for polyethylene (PE), polypropylene (PP), ethylene (C2), pygas and mixed C4 products.”

Robinsons Bank’s revenues rose 41% to P6 billion, driven by higher interest income, commission income and trading gains.

Cost of sales and services went up 12% to P54.09 billion in the third quarter, bringing the nine-month tally 7.4% higher to P153.35 billion “due to higher input costs of the food, real estate and airline businesses.”

JG Summit’s operating expenses increased by 9.9% P42.90 billion, mainly due to higher selling, general and administrative expenses of the airline business.

“The Group’s financing costs and other charges, net of interest income, increased by 28.9% to P7.21 billion this year from last year’s P5.59 billion due to higher level of financial debt of the Parent Company, airline, petrochemicals and real estate businesses, as well as the impact of PFRS 16 on interest expense,” JG Summit said.

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