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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.

Reclaiming Maria Clara

SINGER-SONGWRITER Abby Asistio is back with a new song about reclaiming the meaning of the term “Maria Clara” for the Filipinas of today.

“I wrote this song for a full year before releasing it. It’s a song about my experiences and how I view myself as a woman who is not into a relationship just for the sake of it. I have values and I have standards,” Ms. Asistio said during a press conference on Nov. 6 at the Mecca Aesthetic Center in Quezon City.

“Maria Clara” is a term used to represent the “ideal” Filipina woman — demure, religious, gentle. It is the name of the character who embodied those traits in Jose P. Rizal’s ground-breaking novel Noli Me Tangere.

For her new song, which comes two years after her last song, “Darating Ka Rin,” Ms. Asistio combines the pop sound with the traditional kundiman (serenade). She sings in whispers and trills accompanied by claps and strings. She called her song, “modern kundiman.”

Ngunit nalaman iba ang iyong kailangan, ang mga kagustuha’y hindi nagtatagpo. Panakip butas lang ako, pantawid oras lang sa’yo. Pwede bang ’wag na lang dahil aasa lang ako kung gusto mong maging tayo. ‘Di ako ganoon, may hinahanap rin ako,” Ms. Asistio sings.

(But I know that what you need is different, your wants are not being met. I’m just a substitute, just a way to while the time. Can we just not because I will hope you want it to be us. I’m not like that, I am also looking for something.)

The accompanying music video features Ms. Asistio wearing a terno and dancing with the Philippine All-Stars dance group. The music video is directed by Gorio Vicuna

“Women shouldn’t settle. I believe the right person will come at the right time,” she said.

Ms. Asistio said she continues to create music and is preparing for an album soon.

“Maria Clara” is available on Spotify, Apple Music, and on YouTube. — ZBC

Philex sees 4 MT/year copper-gold ore from Silangan by 2023

MANILA — Philex Mining Corp. said on Thursday it expects to produce up to 4 million tons per year of high-grade copper and gold ores from its $1.1 billion Silangan project in southern Philippines by 2023.

Silangan is a large-scale mine that the Philippine miner plans to fully develop within two-and-a-half years.

Philex is looking for a strategic partner for the project, which the miner aims to finalize within the first half of 2020 along with contracts that will pave the way for development.

“The mine is designed for four million tons per year,” Philex President and CEO Eulalio Austin said in a statement.

“We will start lower, then on the second year, that is in 2023, it will be a full four million tonnes per year,” Mr. Austin added.

Silangan will be Philex’s biggest source of revenue after the closure of its 61-year-old Padcal mine in northern Philippines possibly by 2022.

The Silangan project, which will use the underground sub-level cave mining method, and not the open-pit mining method as initially planned, is expected to yield ore grades of 0.63% for copper and 1.20 grams per tonne for gold.

Silangan, in Surigao del Norte province on the mineral resources-rich Mindanao island, was previously slated to begin production by 2018. However, the project was hit by a ban on open-pit mining introduced in 2017 as the government stepped up environmental protection.

Silangan consists of three deposit areas — Boyongan, Bayugo and Kalayaan — with the latter being a joint venture between Philex and Manila Mining Corp.

Boyongan, with an initial estimated mine life of 22 years, is expected to be the first to start operations in 2022.

Philex has earmarked around $750 million for the development of the Boyongan ore body, and has appointed J.P. Morgan for equity investment and Japan’s Mizuho Financial Group Inc for project financing. — Reuters

Should I stay or should I go?

Tayo Muna Habang Hindi Pa Tayo
Directed by Denise O’Hara

DENISE O’HARA’S Mamang — part Gothic character study, part memory play, part comedy of accommodation — was one of the best films of 2018, I thought. Her sophomore effort Tayo Muna Habang Hindi Pa Tayo (Dating Not Dating) is at first glance a slick exercise in the Philippines’ most popular genre of the moment (the romcom) that at second glance develops (nonfans might say “devolves”) into something messier, more troubling.

Talk about troubling or (rather) troublesome, there’s the question of film title: “tayo muna” is colloquial for “we’re an item” or alternately “we’re dating” — hence my stab at translation. I also like “placeholder” as a translation — captures the title’s whole idea, adding at the same time the rather insulting suggestion of being something convenient, utilitarian — a temporary duct tape patch till something better or at least more permanent comes along.

(As it turns out, the title’s official translation is Waiting to Begin — accurate, but doesn’t really do anything for me)

Which is what Carlo (JC Santos) wants. He’s been burned before, he’s leery of being hurt again. Carlo’s an independent contractor who collaborates on occasion with ad executive Alex (Jane Oineza) and their work relationship — he comes up with the ideas, she the logistics — has developed into casual flirtation, developed in turn to a physical relationship with suggestions of commitment.

More or less. Trouble comes when Alex nudges Carlo into a DTR talk and doesn’t like what she hears; the rest of the film is the back-and-forth between the two as they deal with the fallout.

As simple as that, except it isn’t, not really. O’Hara starts the film in media res, cutting between a lonely Carlo pining away in his apartment (he turns a stray cockroach into a major domestic crisis) and a nervous Alex trying to encourage fitness fanatic Bernard (Victor Sy) into seducing her (more like encourage Bernard’s peacock display of physical prowess while she struggles to act interested). O’Hara cuts back and forth between the budding relationship and its later wilt, a few of the transitions cleverly staged (Alex delivering Carlo’s things in a trash bag, pounding on his door; cut to inside the apartment [only it’s hers] waking up beside Carlo in bed realizing she’s late for work; rushing out, having second thoughts, turning to charge back in the apartment [only it’s his] to dump the trash bag on the floor). We see both sides of the relationship (its development, its decay), their unhappiness at being without each other, their unhappiness at being with each other, and we wonder: What’s going on? Why don’t they just make up their minds and decide?

Which turns out to be what the film’s about after all: the difficulty in defining a relationship between two complex human beings. No, this isn’t as smoothly paced and plotted as a romcom, its vague frustrating refusal to commit one way or another (Is it a romcom? A breakup movie? A comedy of indecision or a tragedy of unfulfillment?) being its real subject. Even the leads while showing chemistry don’t quite gel perfectly — Oineza a healthy plump partridge of a woman not afraid to bark out laughing or chow down heartily on a meal, Santos a wistful daydream of a man who delivers comic lines in a wry whisper — and that’s all right, the raspy incompatibility of two people rubbing against each other trying to smooth out a compromise.

The film’s not perfect: I understand industry folks’ tendency to turn to advertising when they want to give their characters a profession — it’s their bread and butter too, the day job that allows them to maintain their very expensive mistress, cinema — but I’m not a fan of the trope. The couple seems to operate in a vacuum — we see them striding through an office with people in the background, extras with no dialogue looking on the quarreling lovers with barely any curiosity (could be a stylized thing — in Carlo and Alex’s world only they have any real existence; on the other hand, a best friend or co-worker could’ve added some texture to the relationship). Santos gives the funnier performance but Oineza is an equally capable comedienne (her opening scenes with Bernard the bodybuilder, where she can barely bring herself to follow the man’s relentless narcissist bragging, are hilarious) — too bad she mostly ends up as straight man to Santos’ punchlines.

Maybe my biggest plaint is this need to DTR anything at all. Discussing a relationship sounds less like a breath of fresh air and more like the wheezing of a terminal ward patient; you wonder if maybe younger folks are talking the fun out of relationships. In my time we just went ahead and dated without worrying if this is a thing or not, should it be, and why — but don’t mind me; I’m probably on the wrong side of history and this is strictly a generational thing.

I do like quite a few of the director’s touches: how without much fuss she has Alex live in financial independence, with a more prosperous-looking apartment; how Alex is Carlo’s boss without need to hide their relationship or even feel embarrassed (maybe there’s a professional ethics issue?); how Carlo prepares Alex’s packed lunch and coffee thermos, even tucks in her shirt before she runs out the door — baby steps not major steps forward and probably not the first time depicted onscreen, but, but, but…

O’Hara’s second feature doesn’t have the impact of her first, but then she doesn’t have a story whole and complete (between her uncle and her grandmother) and waiting for translation to the big screen. This isn’t the same story or even the same kind of story either, it has a different, more understated look, and it whets the appetite to see what she might come up with in her next film.

Fruitas prices IPO at P1.68 per share

FRUITAS Holdings, Inc. on Thursday priced its initial public offering (IPO) at P1.68 each, the low-end of its indicative range.

“The Company agreed to price the issue at P1.68 per share in order to ensure a healthy performance of the stock upon listing,” BDO Capital & Investment Corp. President Eduardo V. Francisco was quoted as saying in a statement.

BDO Capital together with First Metro Investment Corp. are the joint issue managers, bookrunners and lead underwriters for Fruitas’ IPO.

“Given the attractive pricing, we look forward to more participation from the general investing public investors.” First Metro Executive Vice-President Daniel D. Camacho added.

The food and beverage kiosk operator will start its offer period on Nov. 18 and will last until Nov. 22. It will offer 533.66 million shares with an over-allotment option of up to 68.34 million shares, which will raise up to P1.01 billion for the company.

If Fruitas followed its maximum share price of P1.99 apiece as earlier announced, it would have generated up to P1.2 billion from the IPO.

Fruitas is scheduled to list on the Philippine Stock Exchange on Nov. 29 and will trade under the ticker FRUIT. If the offer maximizes the overallotment option, Fruitas’ public float will be 28.2%.

The company earlier said it plans to use the proceeds from the IPO for network expansion and store improvements (59.4%), acquisition and introduction of new concepts (15.2%), debt repayment (15.2%), commissary expansion (5.1%) and food park business expansion (5.1%).

Fruitas booked a consolidated revenue of P1.58 billion in 2018, 37% up from a year ago on the back of higher sales from its stores nationwide.

In an investors’ briefing last week, the company said it is planning to expand its network of stores, increase same-kiosk sales growth, improve sales margins, introduce new concepts, acquire more food service brands and grow its food park business.

Fruitas set to be the fourth company to hold an IPO this year, following Kepwealth Property Phils, Inc. in August, and Axelum Resources Corp. and AllHome Corp. in October. — Denise A. Valdez

Unions bracing for fight over salty-foods tax

By Gillian M. Cortez
Reporter

A MAJOR union has expressed its opposition to a proposed tax on salty foods, saying it adds to the burden on workers by rasing the cost of key goods while wages remain stagnant.

Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) Spokesperson Alan A. Tanjusay told BusinessWorld this week that the proposed tax measure does not consider that many low-income workers have no choice but to eat salty food despite being aware of the health effects of food processing.

“The proposed measure to impose tax on salty food is not acceptable at this time. If the government begins to tax salty food with (workers’) current meager and inadequate salaries, government itself is putting its poor working people at further risk,” he told BusinessWorld.

TUCP has used the Pinggang Pinoy model of the Department of Science and Technology’s Food and Nutrition Research Institute (DoST-FNRI) as the basis for its wage petitions, arguing that current pay is not adequate to ensure nutritious meals for workers and their families. A computation made by the Ateneo Policy Center in May indicates that a P734.00 daily wage is needed for a family of four to afford food that meets Pinggang Pinoy’s nutrition minimums.

The average daily minimum wage for Filipinos in the private sector varies by region, and ranges from P270 and P537.

Health Secretary Francisco T. Duque III floated the idea of a salt tax last month as a means of reducing non-communicable diseases (NCDs), where excessively salty foods are a risk factor. He has adjusted his position, adding over the weekend that a salt tax is “anti-poor” but the government still needs to implement salt reduction schemes to discourage consumption.

The World Health Organization (WHO) reported that Filipinos consume more than double of the required daily sodium intake of five grams.

A recent study released by the DoH in partnership with the WHO, United Nations Development Programme (UNDP) and the United Nations Interagency Task Force (UNIATF) concluded that by investing P5 billion in measures to reduce salt intake such as new labelling rules over the next 15 years, the economy could generate a P163.1 billion return from increased productivity and prevent 164,251 deaths that would have otherwise taken place.

The Department of Finance (DoF) was tepid on the proposed tax in contrast to its usual eagerness to tax unhealthy behaviors. It proposed a more robust “health education” program to address salt consumption.

The DoF and DoH are currently studying the proposed tax measure with the Department of Trade and Industry (DTI).

Mr. Tanjusay said that the government should also offer healthier alternatives to the food consumed by most Filipinos if it is serious about minimizing combat diseases brought about by consuming salt.

Friends reunion may be in works

COULD Friends be getting back together, if only for a one night stand?

The Hollywood Reporter and Variety on Tuesday reported that preliminary talks were underway for an unscripted reunion special that would feature all six Friends actors and air on upcoming streaming service HBO Max, a unit of AT&T’s WarnerMedia.

HBO Max had no comment on the reports, which follow hints by Jennifer Aniston that something might be underway.

The talks are still in the very early stages and would not involve reviving the hit comedy series that ended in 2004, the two entertainment industry publications said, citing unidentified sources.

HBO Max secured the rights to all 10 seasons of Friends for its streaming service that is scheduled to launch in April 2020. The series has found a new lease of life on Netflix where it was the second most-watched show in 2018, according to Nielsen data. — Reuters

PAL operator’s losses widen

LOSSES of PAL Holdings, Inc. (PAL) ballooned in the third quarter, due to a decline in passenger and cargo revenues.

In a regulatory filing, the listed operator of Philippine Airlines (PAL) doubled its attributable net loss to P5.16 billion in the third quarter, from P2.52 billion during the same period last year.

For the July to September period, revenues were down 0.28% to P36.7 billion, “due to the decrease in passenger and cargo revenues offset by the increase in ancillary revenue.”

Broken down, passenger revenues slipped 0.43% to P31.5 billion. Cargo revenues declined by 11.05% to P2.4 billion, but this was offset by a 13.32% rise in ancillary revenues to P2.71 billion.

Expenses were flat at P39.51 billion, but other charges surged to P3.45 billion from P706 million a year ago.

“‘Other Charges’ in total showed a significant increase of P2.7 billion, primarily attributable to higher financing charges by P1.76 billion as a result of the Group’s adoption of PFRS (Philippine Financial Reporting Standards) 16, Leases in 2019 and higher other charges by P0.99 billion as there were significantly less credit memos received from aircraft manufacturers,” PAL Holdings said.

In the nine months ending September, PAL’s attributable net loss widened 116.2% to P8.5 billion from last year’s P3.92 billion, as expenses and financing charges increased.

Revenues rose 5.6% to P117.92 billion, primarily as passenger and ancillary revenues increased due to additional frequencies and new routes which contributed to the growth in passenger volume.

However, expenses also increased 2% to P117.138 billion. Financing charges as of end-September ballooned 142% to P9.45 billion from P3.8 billion a year ago, which the airline attributed to the adoption of PFRS 16, leases and additional aircraft financing.

The higher passenger and ancillary revenues helped offset the 8% drop in cargo revenues to P6.89 billion. Passenger revenues increased 5.76% to P102.7 billion, while ancillary revenues went up 18% to P8.25 billion. — Arjay L. Balinbin