B3
BUSINESS
FRIDAY, FEBRUARY 2, 2024
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Robinsons Retail’s income fell 29.5% to P4.12b in 2023
BUSINESS BRIEFING. Secretary Frederick Go (second from left) of the Office of the Special Assistant for
Investment and Economic Affairs (OSAPIEA) vows to help businesses cut through red tape and clarify unclear rules. With Go during the inauguration the Anti-Red Tape campaign at the Economic and Ease of Doing Business briefing at Manila Hotel on Jan. 24 are director-general Ernesto Perez (second from right) of the Anti-Red Tape Authority (ARTA), Philippine Chamber of Commerce and Industry (PCCI) honorary chair and treasurer Sergio Ortiz Luis Jr. (left), PCCI president Enunina Mangio (center) and Trade Undersecretary Carol Pascual-Sanchez (right).
ROBINSONS Retail Holdings Inc. (RRHI) said Thursday its net income attributable to the parent company fell 29.5 percent in 2023 to P4.12 billion from P5.85 billion in 2022. RRHI attributed the decline to the reversal of foreign exchange gains in 2022 to a loss in 2023 with the appreciation of the peso against the US dollar, the reversal of the equitized earnings to a loss with the derecognition of Robinsons Bank’s net income under equitized earnings following the merger with Bank of the Philippine Islands (BPI) and losses from start-up investments. It said minus one-off items, its core net earnings registered a growth of 0.6-percent year-on-year to P5.6 billion. RRHI said its investment in BPI yielded a net positive carry in 2023, better than expected as borrowings related to the purchase of the bank’s shares were reduced faster than planned. Consolidated net sales rose 7.4 percent
in 2023 to P192.1 billion from P178.8 billion with supermarkets and drugstores as main growth drivers, despite inflationary pressures and a high base in 2022 with the economic reopening. Operating income grew 2.3 percent year-on-year to P8.9 billion. “The strategic initiatives we put in place in 2023 such as increasing market coverage and improving store efficiency proved instrumental in maintaining our growth trajectory despite the challenging operating environment,” RRHI president and chief executive officer Robina Gokongwei-Pe said. “As we move forward in 2024, we are optimistic that we can capture the expected recovery in consumer confidence, particularly as inflation pressures begin to subside. We remain committed to expanding our business prudently, balancing the needs of our retail customers with the interests of our diverse stakeholders,” she said. Jennifer B. Austria
PH stocks decline as US Fed rate cut hopes dim By Jenniffer B. Austria
P
HILIPPINE stocks fell Thursday following a selloff on Wall Street as investors’ hopes of an early rate cut dimmed.
The benchmark Philippine Stock Exchange index shed 23.43 points, or 0.35 percent, to close at 6,623.01, while the broader all-shares index dipped 13.46 points, or 0.38 percent, to settle at 3,486.19. US stocks plunged after the US Federal Reserve kept rates unchanged and indicated that it is unlikely to cut rates in March.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the market’s two-day slide could still be considered a healthy correction after gaining for most days last week. Total turnover reached P3.4 billion, while foreign investors were net buyers with total net inflow of P460.2 million. Meanwhile, Asian equities were mixed
Thursday after the Fed poured cold water on hopes for a March interest rate cut. The downbeat sentiment was compounded by disappointing earnings from US titans Microsoft and Alphabet, which pummeled the tech sector, while investors were also eyeing developments in the Evergrande crisis after its liquidation order by a Hong Kong court this week. After a much-anticipated meeting, Fed policymakers acknowledged that inflation was going in the right direction and that they expected to begin lowering borrowing costs this year from their two-decade highs. However, they said the board was
unlikely to start cutting “until it has gained greater confidence that inflation is moving sustainably” towards its two percent target. Boss Jerome Powell said after the gathering that “almost everyone” favored a step down this year, but added, “I don’t think it’s likely that the committee will reach a level of confidence by the time of the March meeting to identify March as the time to cut”. Ahead of the announcement, market bets on a March cut were about 50-50, and observers said the comments were seen as less dovish than expected. PGIM Fixed Income’s Greg Peters
Ookla names Converge ICT fastest internet provider in PH
MGen unit signs EPC contracts for 2 solar plants By Alena Mae S. Fores MGEN Renewable Energy, Inc. (MGreen), the renewable energy arm of Meralco PowerGen Corp. (MGen), said Monday it signed the engineering, procurement and construction (EPC) contracts for its solar power plant projects in Cordon, Isabela and Bongabon, Nueva Ecija. MGreen awarded the contracts to SUMEC Complete Equipment and Engineering Co. Ltd. on Jan. 24, 2024 at its office in Ortigas Center, Pasig City. The EPC contracts are for the construction of the 49-megawatt solar plant in Cordon and the 18.75-MW plant in Bongabon. MGen president and chief executive Jaime Azurin said SUMEC is the company’s strategic partner “as we embark on the transformative journey towards realizing our vision of becoming a company at the forefront of renewable energy utilization.” “We hope that with the cooperation of SUMEC, we’ll be able to deliver the project on time, on schedule, and within budget,” Azurin said. Both solar plants are among the winning bidders in the Department of Energy’s (DOE) second round of Green Energy Auction Program (GEAP). MGreen said these projects reflect the company’s strategic move to expand its solar power capacity and contribute significantly to the nation’s renewable energy aspirations. “As we move forward on this journey, the real hard work begins— the day-to-day dedication to ensuring the timely completion of these projects. We encourage the team to bring forth the same level of hard work and collaborative spirit to effectively address any challenges that may arise along the way,” MGen expanding markets division head Dan Neil said. The company aims to start the commercial operations of the two solar plants in the first quarter of 2025. SUMEC’s senior marketing and sales Director Lennon Zong said MGen is one of their most valuable clients as he assured the timely completion of the said projects.
said that while inflation was well down from the four-decade highs seen in 2022, the Fed’s work would likely get harder now that more market volatility could be expected. “Given the underlying strength in the economy, and the ability for labor markets to seemingly shrug off higher interest rates, the Fed remains more focused on its inflation mandate than on the job market,” said Tai Hui at JP Morgan Asset Management. “It does appear that the balance of risks is skewed towards inflation remaining sticky rather than the economy falling into recession.” With AFP
By Darwin G. Amojelar
JICA SUPPORT. The Board of Investments (BOI) and Japan International Cooperation Agency (JICA) Philippines host the culminating forum for the JICA IHRD Project at the Dusit Thani Hotel in Makati City on Jan. 24, 2024. Fukui Keisuke, senior representative of JICA Philippines, delivers the opening remarks during the meeting. The project aims to elevate human capital skills and address supply chain linkages by implementing improved operational models for industrial human resource development and supply and value chain development.
Abacore earns P227.5m from sale of Mabini, Batangas property ABACORE Capital Holdings Inc. said Thursday it earned P227.5 million from the sale of its Batangas property. AbaCore said in a stock exchange filing its wholly-owned subsidiary Omnilines Logistics International Network Inc. sold its 30,117-square-meter (sq. m,) located in Barangay San Juan in Mabini at P10,200 per sq. m. It said the transaction is part of the group’s overall strategy to work with businesses that want to enter or to expand their presence in Batangas. “The sale of a property owned by our subsidiary Omnilines Logistics International Network represents our
continuing effective management of our portfolio, allowing the company to strengthen its bottom line and provide value to our shareholders,” AbaCore vice chairman Antonio Victoriano Gregorio III said. “ABA will continue to work with other entities to maximize the potential of our portfolio, and we aim to further add more properties investments that would provide the necessary investment returns and generate additional income,” Gregorio said. The company started rationalizing its property portfolio in 2023 following the sale of various Batangas-based
properties such as in Pagkilatan, Calingatan, Mataas na Kahoy, San Salvador, Lipa and Inosloban. These transactions allowed it to earn hundreds of millions in net profit. It also took steps to replenish making strategic investments in properties in Cavite and Batangas, so that it could continue to take advantage of deals that may take place in the future. AbaCore is a holding company with interests in various sectors such as real estate, tourism, banking and mining. AbaCore’s stock was unchanged Thursday at P1.07. Jenniffer B. Austria
CONVERGE ICT Solutions Inc. said Thursday it remained the fastest internet service provider in the country, according to Ookla Speedtest Awards for the second half of 2023. The company said it dominated the Ookla Speedtest Award in the second half and was declared the fastest Internet service provider in the Philippines, toppling competition which held the title for the past five years. “Our path to this achievement was guided by the singular mission of answering the broadband needs of Filipinos. That is why, each year, we made leaps in technology innovation and product development, all to deliver excellent connectivity solutions to our subscribers,” Converge chief executive and co-founder Dennis Anthony Uy said. “We are glad to be recognized by Ookla for this collective hard work that ultimately led us to a clean sweep of their top awards including the fastest Internet service provider,” he said. Converge said it cemented its speed dominance in the user-initiated speed test and ratings awards after it concluded in the third quarter to fourth quarter of 2023 with top internet speed of 457.56 megabits per second (Mbps), surpassing the national top speeds of 365.19 Mbps.
Cebu Pacific gets CAPA gold rating for sustainability initiatives in 2023 CEBU Pacific Air (CEB) said Thursday it cemented its leadership in sustainable aviation practices, earning a prestigious gold rating from the Centre for Asia Pacific Aviation (CAPA) and an improved environmental, social and governance (ESG) score of 41 from S&P Global. CEB said its dedication to reducing carbon emissions, integrating sustainable aviation fuel (SAF) and transparently reporting sustainability metrics secured its place among the top 19 airlines awarded the Gold rating in the 2023 CAPA-Envest Global Airline Sustainability Benchmarking Report. The achievement positions CEB as the highest-rated airline for sustainability in
the Philippines and one of only two lowcost carriers (LCCs) in Southeast Asia to garner the distinction. CEB improved its ESG score from 38 in 2022 to 41 in 2023, ranking in the 69th percentile among 63 assessed airlines by S&P Global. The S&P Global ESG Score evaluates a company’s ESG management through disclosures, media and stakeholder reports, and direct engagement. CEB said it excelled in the social dimension, with a score of 53, exceeding the industry average of 44. This was complemented by improvements in the environmental dimension, where the airline boosted its rating from 20 in 2022 to 26. Joel Zurbano
GREAT WORKPLACE. STT GDC Philippines, a leading provider of nextgeneration data center services, is recognized as a Great Place to Work in the Philippines. The award acknowledges the company’s efforts in cultivating a workplace environment that nurtures and values its team members. STT GDC Philippines is actively involved in developing a robust local talent pool to support the surging demand for data center services in the country.