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Chelsea 1st quarter income rises 21%

EARNINGS of Chelsea Logistics and Infrastructure Holdings Corp. jumped by 21% in the first three months of the year, driven by robust revenues from its logistics business.

The Dennis A. Uy-led company said in a statement Friday its net income stood at P139 million in the first quarter, as revenues rose 33% to P1.6 billion.

The bulk or 90% of revenues came from the shipping segment which saw a 32% increase to P1.5 billion.

The logistics segment also contributed P118 million, more than double the P58 million it posted last year.

“We are thrilled with the remarkable partial results of our logistics expansion program in terms of top and bottomline, and this is just the beginning. We are continuously expanding and optimizing our logistics assets and seizing opportunities to extend our reach,” Chelsea President and Chief Executive Officer Chryss Alfonsus V. Damuy was quoted as saying.

The company said its shipping revenues were boosted by a 36% rise in passage revenues to P296 million, a 35% increase in tankers and tugs revenues to P663 million, and a 28% growth in freight revenues to P522 million.

Costs and services grew 33%, operating expenses increased 21% and other charges up 128% due to the new vessels acquired by the company, namely the M/V Stella del Mar, M/V Salve Regina and M/V Trans-Asia which were all operating in the January to March period. — Denise A. Valdez

JG Summit creates digital equity ventures unit

JG Summit Holdings, Inc. is diving further into the digital space, pouring $50 million into a unit that will invest in digital ventures and emerging technologies in Southeast Asia.

The Gokongwei-led conglomerate said in a statement Friday that it established JG Digital Equity Ventures (JG DEV), which will deploy capital to early stage startups and successful portfolio companies raising funding at later stages.

The listed firm said JG DEV’s investments will be within the new media, consumer sector, retail and financial services verticals. It will also look at technology platforms that could power future industries such as digital health, data, and logistics.

The aim is to invest in startups that can either augment or disrupt JG Summit’s core businesses, which cover air transport, real estate, banking, telco, power generation, agro-industrial and commodities, and petrochemicals.

“Digital is a key pillar to JG Summit’s future. There is no shortage of ideas in the digital space, so we must focus on a few big bets that generate the most value,” JG Summit President and Chief Executive Officer Lance Y. Gokongwei said in a statement.

JG Summit has already invested at least $40 million in technology startups in the past. This includes SEA Limited, the firm behind online marketplace Shopee, as well as digital lender Oriente which operates in Indonesia, Vietnam, and the Philippines.

“JG is known to have very strong offline businesses. Our group is behind the pack in this digital journey, so our challenge is to leapfrog from where we are,” JG DEV Chief Executive Officer Bach Johann M. Sebastian was quoted as saying.

So far, JG DEV’s portfolio already includes Cashalo, a mobile app that allows users online and offline financing using their smartphones; Growsari, a retail startup that gives sari-sari stores direct access to suppliers; and Snapcart, which provides analytics services to brands by processing offline date like grocery receipts.

JG DEV will also be tasked to build digital businesses in-house and enter into joint ventures that will help its parent firm’s other subsidiaries, such as Cebu Pacific, Robinsons Retail Holdings, Inc., Universal Robina Corp., and Robinsons Land Corp.

“Given the unique combination of the JG’s extensive ecosystem, massive customer base and its forward-thinking leadership, I’m confident that JG DEV will emerge as a digital leader in Asia,” JG DEV Chief Operating Officer Ian Estrada said in a statement.

Shares in JG Summit firmed up 1.32% or 80 centavos to close at P61.50 each at the stock exchange on Friday. — Arra B. Francia

Swiss challenge for CTBEx seen before end-2019

THE Metro Pacific Tollways Corp. (MPTC) said it is expecting to conduct the Swiss challenge for the Cavite-Tagaytay-Batangas Expressway (CTBEx) project before the year ends.

“We’re hoping by at least third or fourth quarter it will be undergoing Swiss challenge already. It’s already May, and hopefully by second quarter it will be cleared for Swiss challenge so we can do the Swiss challenge by the third quarter, at the latest fourth quarter,” MPTC President Rodrigo E. Franco told reporters last Tuesday.

The CTBEx proposal of MPTC’s MPCALA Holdings, Inc. is currently being evaluated by the National Economic and Development Authority (NEDA). It was given original proponent status by the Department of Public Works and Highways (DPWH) in July 2018.

MPCALA Holdings proposed to build a P22.43-billion, 50.42-kilometer toll road that would connect the Cavite-Laguna Expressway at the Silang East Interchange to Tagaytay City and Nasugbu, Batangas.

It is expected to reduce travel time from Governor’s Drive to Nasugbu by 58 minutes, and from Sta. Rosa to Tagaytay by 1 hour and 15 minutes.

Under the Swiss challenge, third parties are invited to submit competing offers, while the original proponent will be given the right to match them.

If MPCALA Holdings prevails during the Swiss challenge, it will be awarded the concession for the CTBEx project.

MPCALA Holdings is under MPTC, the tollways unit of Metro Pacific Investments Corp. (MPIC). MPIC is one of three key Philippine units of Hong Kong based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

Cosco Q1 profit hits P8.53B thanks to sale of Liquigaz

COSCO Capital, Inc. reported its net income attributable to equity holders of the parent company surged by 605% to P8.53 billion in the first quarter, thanks to the gain from the sale of Liquigaz Philippines Corp.

In a statement issued Friday, the retail holding firm of tycoon Lucio L. Co said core net income attributable to the parent increased by 9% to P1.32 billion, riding on the back of the country’s economic growth and higher consumer spending.

Cosco completed its divestment from Liquigaz last January, selling its entire stake in the liquefied petroleum gas firm to Fernwood Holdings, Inc. The company did not disclose the value of the transaction, but noted that it is less than 12% of total assets as of December 2017 or P111.61 billion.

The listed firm’s grocery retailing business through Puregold Price Club, Inc. and S&R Membership Shopping Club, delivered consolidated revenues of P34.8 billion, 12.8% higher year on year. Consolidated net income accordingly grew 11.9% to P1.5 billion.

Same-store sales growth stood at 6.9% for Puregold stores, while S&R’s ended at 9.4%.

“Our SSSG in the first quarter of 2019 is driven by higher consumer spending fueled both by minimum wage inflation in 2018 and easing inflation in 2019,” Puregold said in a separate statement.

The company opened a total of eight new Puregold stores and one S&R Warehouse Club during the period, bringing its total store count to 417 by end-March. Its total net selling area is now at about 550,000 square meters.

Cosco’s liquor distribution business recorded a 28.3% increase in net income to P230 million, after consolidated revenues climbed 24% to P2.1 billion. The company benefited from higher sales of Alfonso Light Brandy and Alfonso Brandy.

Office Warehouse, Inc., the company’s specialty retailing business segment, posted a 212% profit jump to P29 million. Revenues likewise grew 24.5% to P621 million. Same-store-sales growth was healthy at 18% from across 88 operating stores.

Meanwhile, the commercial real estate segment posted a net income of P313 million, 10.5% higher year on year, following a 5.4% uptick in total revenues to P641 million. — Arra B. Francia

Developer CPG posts 36% higher profit in Q1

Asian Century Center
CENTURY PROPERTIES GROUP, INC.

CENTURY Properties Group, Inc. (CPG) saw its earnings grow by 36% in the first quarter, on higher real estate sales and leasing revenues.

In a regulatory filing Friday, the Antonio-led property developer reported its net income attributable to equity holders of the parent company stood at P367.8 million in the January to March period.

Revenues went up 2.3% to P2.773 billion year on year.

Broken down, real estate revenues grew by 4.44% to P2.447 billion during the first quarter, “coming from the company’s affordable housing business and the additional substantial progress in construction and sales take up of its on-going in-city vertical developments.”

Leasing revenues also increased by 29.52% to P108.85 million due to the revenues generated from the start of operations of its new Asian Century Center, a 21-storey office building in Bonifacio Global City, Taguig.

“We continue to improve on our operational efficiencies while implementing the company’s expansion programs. The goal is to grow CPG’s new allied real estate businesses to have a diversified net income mix with more sustainable cash flow and recurring income. The company’s hard work has started showing positive results that will drive its growth in the medium to long term,” Ponciano S. Carreon, Jr., chief finance officer and head for investor relations of CPG, said in a statement.

The company announced that its affordable housing brand PHirst Park Homes sold more than 3,000 housing units with value at about P4.4 billion from three projects as of end of April this year. — V.M.P.Galang

Max’s income grows by 18% in Jan-March

Max’s Group, Inc. (MGI) grew its net income by 17.6% in the first quarter of 2019, as the company benefited from its strategic shift to franchising and other cost stabilization efforts.

In a statement issued Friday, the listed casual dining restaurant group said net income reached P146 million in the first three months of the year following a 4.2% rise in revenues to P3.4 billion. Systemwide sales also firmed up 3.4% to P4.6 billion.

“Our improved year on year performance is attributed to the effectiveness of our reshaped growth strategies in 2018, particularly our focus on franchising, cost stabilization, and customer-centric activities,” MGI President and Chief Executive Officer Robert F. Trota said in a statement.

The company noted that franchising income jumped 47.5% to P225.1 million against the P152.6 million seen in the same period a year ago. Commissary sales also went up seven percent to P404.1 million.

This came after MGI’s decision to have more franchised stores by 2022, with a ratio of 70% to 30% versus company-owned stores. Company-owned stores currently account for 60% of total stores, while the remaining 40% are franchised.

The strategy is also seen to accelerate its long-term expansion.

“Through the strategic capabilities that we have built over the years, notably analytics, restaurant systems and an integrated supply chain, we are generating a more profitable mix and increasing operational efficiencies,” MGI Group Chief Operating Officer Ariel P. Fermin said in a statement.

MGI opened a total of 14 new stores in the first quarter, two of which are located in the United Arab Emirates, one in Saudi Arabia, and one in Canada. This brings the company’s total store count to 706 outlets. — Arra B. Francia

Philippine Seven income drops 41% in 1st quarter

THE local licensee of 7-Eleven convenience stores reported a 41% profit decline in the first quarter of the year, as it used a new accounting rule that changes the recognition of leased properties.

Philippine Seven Corp. (PSC) said in a statement Friday that net income stood at P112.2 million, lower than the P190.5 million it posted in the same period a year ago. Systemwide sales meanwhile went up 18% to P12.54 billion.

The company noted that the International Financial Reporting Standards on Leases (IFRS 16), which took effect at the start of the year, pulled down profitability since most of its stores are under long-term lease agreements.

“IFRS 16 requires lessees to recognize an asset on the right to use the leased property (the right-of-use asset) and a liability, for the obligation to make lease payments…Unlike, the previous accounting policy, rental payments are recognized as expense evenly or on a straight-line basis over the life of the lease,” the company explained.

Without IFRS 16, net income would have grown 48.3% to P282.6 million.

PSC was supported by a 6.8% same store sales growth and higher number of operating stores. The company ended the quarter with 2,593 7-Eleven stores, following the addition of 56 branches and closure of 13. — Arra B. Francia

Peso strengthens after BSP rate cut

THE PESO strengthened against the greenback on Friday after the central bank cut policy rates amid easing inflation expectations.

The local currency strengthened by 18 centavos to close at P52.12 against the dollar on Friday from P52.30 a day before.

The peso was stronger the entire session, opening slightly higher at P52.225 versus the dollar. It slipped to as low as P52.27 intraday, while its best showing was at P52.085 against the greenback.

Trading volume declined to $1.002 billion from the $1.038 billion that exchanged hands the previous day.

Michael L. Ricafort, economist at the Rizal Commercial Banking Corp. (RCBC), said in a text message that the peso strengthened “after the latest monetary easing by way of a 25 basis points cut in policy rates amid sustained easing trend in inflation.”

The BSP’s policy-setting Monetary Board reduced key rates by 25 basis points on Thursday on the back of a “manageable” inflation outlook. Officials said a possible cut in big banks’ reserve requirements will be discussed in the policy-setting body’s meeting next week.

Likely faster economic growth following the 2019 budget’s passage, as well as the continuing trade talks between US and China, resulted in improved risk appetite that supported the peso, Mr. Ricafort added.

The successful euro bond sale of the government, through which it raised €750 million via eight-year global bonds, well above its initial offer of €500 million due to oversubscription, also improved sentiment, he added.

Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc., also attributed the peso’s strengthening to the Bangko Sentral ng Pilipinas’ move to loosen its policy.

“Generally, the BSP cut is a sign that the economy has potential to go higher than it has,” Mr. Asuncion said. — R.J.N. Ignacio

Pag-IBIG Fund books higher income in Q1

THE HOME Development Mutual Fund (Pag-IBIG Fund) booked a higher net income in first quarter on improved loan demand and collections.

In a statement, Pag-IBIG said its net income reached P8.96 billion in the first three months of 2019, climbing 10.5% year-on-year.

Gross income, on the other hand, also rose 7.3% to P12.05 billion in the quarter from the year-ago level.

“While the first three months of the year are usually slow for most companies, we have once again bucked the trend as we continue to achieve double digit growth. The demand for our home loan and cash loan programs exceeded our projections by a considerable margin and marked increases from the same period last year,” Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti was quoted as saying in the statement.

In the January to March period, Pag-IBIG’s home loans releases went up 22% year-on-year to P17.21 billion while the number of borrowers increased 13% to 19,696.

Meanwhile, short-term loans (STL) or cash loan releases rose 8% year-on-year to P12.05 billion in the quarter as the number of borrowers grew to 593,269, also higher by 12% from the previous year’s total.

On the other hand, collections stood at P40.24 billion in the period, up 13% from the comparable year-ago period.

Collected members’ monthly savings went up 16% to P11.15 billion. Payments for home loans grew 15% to P15.25 billion, while STL payments went up 8% to P13.67 billion in the first quarter.

Pag-IBIG Fund’s total assets reached P552 billion as of March, 12% higher versus the previous year’s level.

“Our Q1 financials prove once again how robust the workers’ fund really is. We achieved our best year yet in 2018. If the upward trend continues in the next three quarters, we may well be on the way to achieve another best year in 2019,” Mr. Moti said. — GMC

Shares decline further as US-China trade woes deepen

SHARES slipped on Friday as investors focused on the US’ tariff hike on $200-billion worth of Chinese goods.

The bellwether Philippine Stock Exchange index (PSEi) shed 0.17% or 13.42 points to close at 7,742.20, continuing the bloodbath seen in the previous session after a disappointing Philippine first-quarter gross domestic product (GDP) reading.

The broader all shares index likewise dropped 0.34% or 16.59 points to 4,791.26.

“Philippine shares whipsawed between gains and losses today before settling the red with the trade tension at the center,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message on Friday.

The United Sates increased tariffs to 25% from 10% on $200 billion worth of Chinese goods at 12:01AM ET on Friday amid ongoing trade negotiations in Washington. Beijing was reported to say that it “deeply regrets” the implementation of the tariff hikes, adding that it will take countermeasures.

Philstocks Financial, Inc. also attributed the PSEi’s decline to the tariff hike, saying in a market note on Friday: “US-China trade war escalation and dismal Q1 2019 GDP sent local stocks lower today.”

The country’s first quarter GDP growth was recorded at 5.6%, lower than the previous quarter’s 6.3% and the 6.5% recorded in the same period a year ago.

Despite the tariff hike, Chinese indices soared on Friday as investors went bargain hunting after several sessions in the red. The Shanghai Composite index jumped 3.1% or 88.26 points to 2,949.21 while the Shenzhen Component firmed up 4.03% or 358.08 points to 9,235.39.

The Hang Seng index also edged higher by 0.84% or 239.17 points to 28,550.24, while other Asian indices finished lower.

Wall Street indices meanwhile incurred losses overnight, as the Dow Jones Industrial Average retreated 0.54% or 138.97 points to 25,828.36. The S&P 500 index went down 0.3% or 8.70 points to 2,870.72, while the Nasdaq Composite index tumbled 0.41% or 32.73 points to 7,910.59.

Back home, four sectoral indices stayed in negative territory, including mining and oil which plunged 1.88% or 140.80 points to 7,325.28. Holding firms fell 0.92% or 68.36 points to 7,345.91; services slumped 0.66% or 10.75 points to 1,595.57, while property dipped 0.01% or 0.74 point to 4,118.

In contrast, financials jumped 1.17% or 20.27 points to 1,738.83 and industrials rose 0.2% or 23.92 points to 11,528.32.

Some 817.38 million issues switched hands valued at P7.55 billion, lower than Thursday’s P9.1-billion turnover.

Decliners outpaced advancers, 101 to 78, while 64 names were unchanged.

Foreign investors remained in net selling mode at P688.25 million, although lower than the previous session’s P1.63-billion net outflow. — Arra B. Francia

E-payment solution GCash breaches 50,000 partner merchant mark

Local e-payment solution, GCash, just hit a major milestone. Product operator Mynt (Globe Fintech Innovations, Inc.) announced that the first quarter of 2019 saw their flagship payment solution pass the 50,000 QR merchant mark.

The use of QR for mobile digital payments is very popular in various emerging and developed economies. In China, for example, mobile digital payments account for over half of the country’s total transaction volumes.

This tech is still in its nascent stages here in the Philippines, but is quickly picking up speed with Mynt’s aggressive partnership strategy.

“QR payments provide security and convenience to both merchants and their customers, said JM Aujero, vice president for merchant solutions. “Our thrust as a mobile wallet is to acquire as many merchant partners as possible, even micro-entrepreneurs such as taho vendors, to future-proof us from the expected boom in usage.”

“We want to be as pervasive as our partner Ant Financial in China. QR is the future of payments, and we are committed to lead in this arena here in the Philippines,” he said.

Mynt — a partnership between Globe Telecom, the Ayala Corporation, and Ant Financial — launched GCash in 2017, as part of its thrust towards providing innovative fintech solutions to consumers, merchants, and organizations.

The QR technology of GCash is far reaching, spanning from Luzon to Visayas and down to Mindanao, including popular tourist destination Boracay.

According to Mynt, QR payments are empowering micro, small, and medium enterprises (MSMEs), helping oft-overlooked entrepreneurs transition into the digital arena.

Aside from giving them access to millions of customers, the QR payments solution of GCash allows merchants to enjoy auto-sweeping of their daily transactions into their account, the firm said. It likewise provides a better performance evaluation of the business, as the system provides for QR transaction reports, which allows enterprises to study and analyze their transactions, in real time. Cash handling issues are also addressed through the QR payments system.

“Merchants and social sellers can leverage on the ubiquity of GCash in the Philippines, as well as benefit from this simple, cost-effective, and secure alternative to cash,” JM Aujero said. “Our aggressive stance in fighting for more QR-enabled merchants stems from the fact that everyday, more and more GCash users onboard the platform. Use cases for QR payments also continue to sprout.”

The GCash QR payments solution, he explained, is supportive of the Bangko Sentral ng Pilipinas’ goal of reducing cash payments and increasing the share of non-cash transactions to 20 percent of the total volume by 2020.

“GCash is embarking on a battle against cash to capture more users this year, and the need to increase the number of merchants in the GCash platform only continues to be more pronounced,” he said.

A Mother’s Day history

On May 12, many different countries around the world, including the Philippines, will celebrate Mother’s Day, an annual occasion honoring one of the most important persons in anyone’s life.

Typically, on that that day, mothers are presented with all manner of gifts, from flowers to chocolates to cards containing messages of love and gratitude. Others are treated to a fancy dinner or a relaxing massage at a spa. There are those who are given a break from the tasks of cooking, cleaning and other household chores.

The origins of the celebration of mothers and motherhood can be traced back to the ancient times. For instance, the people of Phrygia, who lived in classical antiquity in what is now Turkey, worshipped the mother goddess Cybele and organized a festival in honor of her.

But the Web site of the cable channel History notes that the modern precedent for what we now know today as Mother’s Day is “Mothering Sunday.”

“Once a major tradition in the United Kingdom and parts of Europe, this celebration fell on the fourth Sunday in Lent and was originally seen as a time when the faithful would return to their ‘mother church’ — the main church in the vicinity of their home — for a special service,” History explains.

This practice became secular, with children giving their mothers flowers and other tokens of appreciation, and less popular, before it merged with the American Mother’s Day in the 1930s and 1940s, the History site says.

In the United States, before the Civil War, a social activist named Ann Reeves Jarvis helped launch “Mothers’ Day Work Clubs” that had the goal of teaching women how to properly care for their children. She also organized “Mothers’ Friendship Day” in 1868, during which mothers and former Union and Confederate soldiers came together to promote reconciliation.

Several years later, another social activist, Julia Ward Howe, who was also an author and a suffragist, penned the “Mother’s Day Proclamation,” an appeal to women to unite to promote peace. She also campaigned for a “Mother’s Peace Day” to be celebrated every second of June.

Ms. Jarvis died in 1905, and after her passing, her daughter, Anna Jarvis, conceived of Mother’s Day as a way of honoring the sacrifices mothers made for their children, the History site says. In May of 1908, at a Methodist church in West Virginia, Anna Jarvis held the first official Mother’s Day celebration.

“Following the success of her first Mother’s Day, Jarvis — who remained unmarried and childless her whole life — resolved to see her holiday added to the national calendar. Arguing that American holidays were biased toward male achievements, she started a massive letter writing campaign to newspapers and prominent politicians urging the adoption of a special day honoring motherhood,” History says.

Her efforts bore fruit. There were many states, towns and churches in the United States that adopted Mother’s Day as an annual holiday by 1912. And in 1914, President Woodrow Wilson officially made Mother’s Day a national holiday that is celebrated every second Sunday of May.

According to Encyclopedia Britannica, Anna Jarvis promoted the practice of wearing white carnation as a tribute to one’s mother. The custom evolved to include a pink carnation to represent a living mother. The white carnation became a tribute to a deceased mother instead. “Over time the [Mother’s Day] was expanded to include others, such as grandmothers and aunts, who played mothering roles,” an article on the Britannica Web site says.

Ms. Jarvis, however, grew “disgusted” by the commercialization of Mother’s Day, and went so far as to openly condemn the holiday’s transformation and dissuaded people from buying Mother’s Day-related items, such as flowers, cards and candies.

“Jarvis eventually resorted to an open campaign against Mother’s Day profiteers, speaking out against confectioners, florists and even charities. She also launched countless lawsuits against groups that had used the name ‘Mother’s Day,’ eventually spending most of her personal wealth in legal fees. By the time of her death in 1948 Jarvis had disowned the holiday altogether, and even actively lobbied the government to see it removed from the American calendar,” the History site says.

Despite this sad turn of events, people around the world continue to celebrate Mother’s Day. And however they celebrate it, their intention is the same: make mothers feel special and loved.