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Tag: manila

  • Smashburger weighs down Jollibee results

    Smashburger weighs down Jollibee results

    Jollibee’s Smashburger and Red Ribbon business units significantly dragged down the restaurant operator’s first-half profits.

    Jollibee Foods Corporation says the company’s net income attributable to shareholders was P1.1 billion (US$21.1 million) in the second quarter – half that of the preceding three months. First-half profit was down 34 percent on the same period last year.

    The company blamed the decline on losses relating to the Smashburger chain and lower sales by its Red Ribbon bakery business.

    “On Smashburger, we introduced major changes that created short-term disruption in sales and profit but will drive sustainable sales growth and strengthen the brand health,” said Jollibee CFO Ysmael Baysa.

    While Smashburger, a relatively recent acquisition for the company, was not yet performing, Baysa says Jollibee has considerable experience restructuring businesses it buys into more profitable operations, namely Yonghe King and Hong Zhuang Yuan in China, and the Highlands Coffee business in Vietnam.

    The poor performance of Red Ribbon during the quarter was attributed to a shortage of supplies relating to the transfer of the company’s commissary kitchen to new premises south of Metro Manila.

    Last month, Jollibee announced the purchase of California cafe chain The Coffee Bean & Tea Leaf for US$350 million. It expects that business to contribute to Jollibee’s bottom line within 12 to 18 months.

    Global sales by Jollibee rose 13.8 percent in the first half, to P113.8 billion (US$2.11 billion) . Most of that growth came from its international operations, which grew by 24.9 percent, far faster than the 13.8 percent of its domestic business.

    Between January and June, the company opened 170 stores, 111 of those in its home market.

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  • Cebu Pacific to expand its hubs in Clark, Cebu

    Cebu Pacific to expand its hubs in Clark, Cebu

    Cebu Pacific said it is eyeing to expand its hubs in Clark and Cebu as it continues to boost its fleet with a target of 83 aircraft by end-2022.

    Lance Y. Gokongwei, president of Cebu Pacific operator Cebu Air, Inc., said the budget carrier will be adding “a lot of frequency” in its hubs in Cebu and Clark.

    “In Clark, we’re going to try to connect the dots so that a lot of North Asia will be able to fly into the south without having to connect through Manila… I think in the next two to three years, you’ll see a lot of flights into Japan, (South) Korea and China from Clark,” he told BusinessWorld on the sidelines of the JG Summit Holdings, Inc. stockholders’ meeting last week.

    For Cebu, Mr. Gokongwei said they will ramp up the frequencies of its existing routes, which currently connect the city to both Japan and South Korea. Cebu is a popular destination for Japanese and Korean tourists.

    “The (Airbus A321neos), we put them into Manila. Then we pull out the (Airbus A320s) and put them to Clark or to Cebu,” he said.

    The carrier is currently on fleet expansion mode and expects the delivery of 12 new aircraft this year, namely six Airbus A321neos (new engine option), five A320neos and one ATR 72-600.

    Mr. Gokongwei said in the long term, what Cebu Pacific wants is to make its Clark operations as big as its Manila operations. “We have to complete the Bacolods, the Iloilos, the Taclobans, the CDOs. Whatever we have in Manila, we’ll replicate in Clark,” he said, but noted it may take about 15 years from now.

    Cebu Pacific said its hubs in Clark and Cebu have already seen rapid growth since the start of the year, both in terms of new routes and frequency of flights.

    For the Clark hub, the carrier already increased its capacity to and from Caticlan by 231% after shifting to use the bigger Airbus A320 starting March 31 from the 78-seater ATR 72-600.

    It also noted it will be opening daily from its Clark hub going to and from Iloilo, Bacolod and Narita by Aug. 9, and daily flights to and from Puerto Princesa by Oct. 9.

    For its Cebu hub, the airline noted it already added frequency to its flights going to Cagayan de Oro, Dumaguete, Siargao, Iloilo, Caticlan, Ozamiz and Zamboanga by an average of 63% since April 15.

    “Flights between Manila and Cebu had likewise increased 24%. The increase in flights from its Cebu hub is on top of its six-times weekly Cebu-Shanghai and Shanghai-Cebu routes which began on April 15, 2019,” it added.

    Cebu Pacific currently has flights from Clark to Cebu, Caticlan, Tagbilaran, Davao, Singapore, Macau and Hong Kong.

    In its Cebu hub, the carrier flies to and from Bacolod, Caticlan, Butuan, Cagayan de Oro, Calbayog, Camiguin, Clark, Davao, Dumaguete, General Santos, Iloilo, Kalibo, Legazpi, Ozamis, Pagadian, Puerto Princesa, Siargao, Surigao, Tacloban, Zamboanga, Hong Kong, Macau, Tokyo (Narita), Singapore and Incheon.

    Listed Cebu Air posted a net income of P3.43 billion in the first quarter, up 138.4% from the same period last year due to a growth in passenger volume and average fares

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  • McDonald’s Philippines Planning 50 Restaurant Openings

    McDonald’s Philippines Planning 50 Restaurant Openings

    McDonald’s Philippines is expanding, with new stores and branch upgrades unfolding this year along with menu additions.

    There are currently around 650 McDonald’s restaurants in the territory, 61 of which opened last year.

    “We’re continuing our aggressive expansion,” said McDonald’s MD Margot Torres. “In terms of new stores, we’re looking at about 50.”

    The firm’s outlets will be upgraded to the McDonald’s Nxtgen system, featuring a touch-screen service allowing customers to place orders without interacting with a cashier. The Nxtgen kiosks also allow customers to customize their orders and access additional offerings.

    An estimated 70 per cent of stores are expected to receive the upgrade by 2021

  • Cebu Pacific’s income jumped 138% to P3.4b in first quarter

    Cebu Pacific’s income jumped 138% to P3.4b in first quarter

    Cebu Air, the operator of low-cost carriers Cebu Pacific and Cebgo, said net income jumped 138.4 percent in the first quarter from a year ago, on the back of strong passenger and cargo revenues. The airline unit of the Gokongwei Group said it posted a net income of P3.4 billion from January to March, up from P1.4 billion it earned in the same period last year. Revenues increased 16 percent in the three-month period to P21.17 billion from P18.26 billion it generated a year earlier.

    Passenger revenues increased 14.6 percent to P15.67 billion from P13.67 billion. The increase was attributed to the 8.5-percent growth in passenger volume to 5.289 million from 4.876 million last year as the group added bigger A321 aircraft to its fleet. The average fare went up 5.7 percent to P2,965 in the first quarter from P2,805 a year ago, contributing to the higher revenues. Cargo revenues grew 12.7 percent to P1.44 billion from P1.279 billion following the increase in both yield and volume of cargo transported in 2019. Operating expenses went up 8.4 percent to P17.34 billion from P15.997 billion a year ago.

    Cebu Air said the increase was driven by expanded operations, growth in seat capacity from the acquisition of new aircraft and the weakening of the Philippine peso against the US dollar. The peso depreciated to 52.36 per US dollar in the first quarter from an average of 51.49 a dollar last year. Flying operations expenses increased 3.8 percent to P7.173 billion from P6.910 billion.  “This was mainly accounted for by the increase in pilot training costs,” CEB said. Fuel expenses also went up as the fuel volume increased by 7.9 percent in the quarter.  The MOPS price of fuel slightly went down to $76.50 per barrel in the first quarter from $79.99 a barrel in the same period last year.

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  • SM Retail Achieves Small Profit Boost

    SM Retail Achieves Small Profit Boost

    SM Retail has achieved a first-quarter profit increase of 5 percent to P2.7 billion (US$51.7 million).

    Retail revenues in the first three months rose by 13 percent year-on-year to P79 billion, while sales from specialty retail stores grew by the same percentage to P19.6 billion.

    As at the end of March, SM Retail had 2385 stores, comprising 63 department stores, 1388 specialty retail stores, 57 SM Supermarkets, 53 SM Hypermarkets, 194 Savemore, 52 WalterMart, and 578 Alfamart stores.

    The figures were included in the quarterly report of SM Investments, which boosted its profit by 26 percent to PHP10.7 billion (US$205 million).

    The gains reflected improved sales from the retail business as well as its property and banking activities.

    Consolidated revenues during the period were up 15 percent year-on-year to PHP109 billion ($2.1 billion).

    “We continued to deliver double-digit growth to both our top and bottom line in the first quarter,” said SMIC president Frederic DyBuncio. “Performance was strong across our businesses, particularly for our banks.”

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  • SM Prime profit rises 16% in first 3 months this Year

    SM Prime profit rises 16% in first 3 months this Year

    Philippine property giant SM Prime Holdings says its net income in the first quarter increased 16 percent based on higher rental income and residential sales.

    Gross earnings increased 14 percent to PHP26.5 billion (US$508.1 million) during the time period, while total outgoing grew 11 percent to PHP13.6 billion ($260.7 million). Net income attributable to shareholders hit PHP8.8 billion ($168.7 million) in the first quarter, in comparison with PHP7.6 billion ($145.7 million) for the same period a year earlier.

    “SM Prime continues to benefit from the overall growth of the Philippine economy that boosts the household income of most families,” said SM Prime president Jeffrey Lim. “We are optimistic that we will sustain this performance this year as we continuously expand our core businesses in developing provincial cities across the country.”

    The firm plans to launch four new malls this year in Pangasinan, Zambales, Caraga and Zamboanga.

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  • PLDT taps Panlilio as chief revenue officer

    PLDT taps Panlilio as chief revenue officer

    PLDT announced Alfredo S. Panlilio (AI) will return to the Philippines telco as chief revenue officer of both PLDT and its mobile unit Smart Communications, starting July 1, 2019.

    Panlilio (pictured) currently serves as senior vice president of customer retail services group at the Manila Electric Company (Meralco).

    He first joined PLDT as SVP for the telco’s corporate business group in 1999 and was later tasked to head PLDT’s carrier business group before he joined Meralco in 2010.

    Panlilio will replace Ernesto R. Alberto (Eric), who is set to step down from his post as PLDT and Smart CRO, effective June 30.

    “We would like to thank Eric for his 16 long years of service and loyalty. Under his watch, PLDT Enterprise rose to become the leading force that it is in the market today,” said Manuel V. Pangilinan, chairman and chief executive officer of PLDT and Smart.

    Enea has tapped former Ericsson executive Jan Häglund as its new CEO.

    Häglund was chosen to lead the company late 2018 to succeed Anders Lidbeck, who becomes chairman of the board, Enea said in a statement.

    Haglund brings to the table 25 years of experience in the telecoms industry. Prior to joining Enea, he was head of Ericsson’s product portfolio and R&D for digital services.

    Anders Lidbeck, chairman of Enea said Häglund will help Enea strengthen and develop its position as a reference supplier and trusted partner.

    “[Häglund’s] wide-ranging experience across many disciplines at Ericsson will benefit Enea and our continued expansion,” he said.

  • Four Bidders shortlisted in Metro China sale

    Four Bidders shortlisted in Metro China sale

    Germany’s Metro has shortlisted four prospective bidders for its China business, including two of Mainland China’s largest retail groups.

    The Metro China sale has been in planning since last September, with formal bids invited in March as the German retail giant looks to quit the challenging market.

    Metro AG has invited Suning Holdings, Yonghui Superstores, Wumart stores and Meicai to submit bids before a deadline of late May, early June. Some of the bids may be lodged in partnership with private equity investors.

    Meicai is an unexpected inclusion in the shortlist. A local startup that acts as a conduit between farmers and restaurants, Meicai was founded by Liu Chuanjun, a local entrepreneur in 2014. According to a Bloomberg News report last October, the startup last year raised at least $600 million in a funding round led by Tiger Global Management and Hillhouse Capital, which would have valued the business then at about $7 billion.

    The Metro China sale is expected to net the Germany owner about $1.5 billion. The cash-and-carry business has 95 stores and reported $3 billion last financial year.

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  • Philippines’ House to hold common tower hearing

    Philippines’ House to hold common tower hearing

    A Philippines’ House of Representatives committee will next week hold a hearing on the government’s common tower policy to address the industry opposition and potential legal hurdles of the proposal.

    The House Committee on ICT will look into the status of the Department of ICT’s common tower policy during a hearing scheduled for Monday, committee chairman Victor Yap told.

    Representatives of Globe Telecom and PLDT, the National Telecommunications Commission, the Department of ICT and the Philippines Competition Commission are all expected to attend.

    Under the proposed policy, tower companies will be allowed to build and operate common telecom towers that can be leased to operators. The DICT has signed agreements with a number of tower companies ahead of the introduction of the policy.

    As well as helping to improve the Philippines’ telecommunications infrastructure, the common tower policy is aimed at allowing the market’s upcoming third operator Mislatel more quickly deploy a mobile network.

    But Globe and PLDT have objected to the draft terms, which had proposed that the number of cell site builders be restricted to two registered tower providers.

    According to the operators, this could lead to an infringement of the rights to own and establish cell sites that is stipulated in their legislative franchises.

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  • AirAsia to fly Manila-Osaka route starting July 2019

    AirAsia to fly Manila-Osaka route starting July 2019

    Budget airline AirAsia announced it will operate flights between Manila and Osaka, Japan for the first time in July 2019.

    In a statement, AirAsia said its daily services for the Manila-Osaka route will begin on July 1.

    AirAsia Philippines president and CEO Dexter Comendador called the launch of the new route a “milestone occasion.”

    “Being able to travel directly and affordably to Osaka is fantastic news for Filipinos and we’re confident this new route will serve as a gateway for guests to connect to other popular destinations in Japan such as Kyoto and Nara,” said Comendador.

    “We are also excited to welcome guests from Osaka and its neighboring regions to the Philippines. This international route will contribute to the government’s target of 8.2 million visitors this year.”

    Along with the launch of this new route, AirAsia also announced an all-in, one-way promo fare starting at P1,990 for its BIG loyaty program members. The airline said bookings for this promo should be made from March 29 to April 7, for travels from July 1 to October 26.

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  • Cebu Pacific Set To Accelerate Expansion with Neos

    Cebu Pacific Set To Accelerate Expansion with Neos

    The Philippines’ Cebu Pacific Air plans to add at least 10 new-generation aircraft to its fleet this year, as it steps up its fleet renewal and expansion plans in a bid to accelerate growth. The country’s largest airline expects to take delivery of five A320neos and five A321neos as part of an ongoing strategy to replace aging aircraft, broaden its network, and up-gauge flights at Manila’s congested Ninoy Aquino International Airport.

    In January, Cebu Pacific took delivery of its first A321neo from Airbus as part of a larger order for 32 of the type. Additional plans call for one ATR 72-600 to arrive sometime this year. The airline now operates a fleet of 35 Airbus A320s, seven A321s, eight ATR 72-500s, 12 ATR 72-600s, and eight A330 widebodies.

    In a securities filing on Monday, the airline announced a 50 percent decline in earnings in 2018, citing challenging market conditions such as high fuel prices, increased competition, the six-month closure of Boracay Airport, and operational limitations at key airports. Net profits fell to $73.8 million from 2017’s $149 million while passenger revenue rose 9 percent year-over-year to $1.4 billion; ancillary revenue grew by 6 percent. The airline generated a 19 percent increase in cargo carried, while passenger numbers rose by 3 percent to 20.3 million.

    “Despite the pressures posed in 2018, we remained resilient,” said Cebu Pacific COO Michael Shau. “We were able to expand our network by up-gauging our flights touching congested airports. 2019 will be a different story though; we have already received the first of our fuel-efficient A321neo orders from Airbus and we expect 10 more new-generation aircraft this year. We also just announced four new domestic routes; 2019 is definitely the year we accelerate our growth.”

    While the airline is planning to add more passenger flights out of its Clark and Cebu hubs, it also sees more opportunity in cargo, reflected in plans to convert two of its ATR 72-500s to large-cargo-door freighters. Once it completes the conversion, Cebu Pacific will become the first low-cost carrier in the world to operate freighters of any type. With operations set for the first quarter of this year, the incoming ATRs will allow the airline to serve smaller airports in the Philippines, thereby allowing for new routes and increased connectivity.

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  • Cebu Pacific leads in Philippines-Australia flights

    Cebu Pacific leads in Philippines-Australia flights

    Budget carrier Cebu Pacific has kept its market share lead in the Philippines to Australia route, a statement on Thursday showed. Citing data from Australia’s Bureau of Infrastructure, Transport and Regional Economics from November last year, Cebu Pacific said it cornered a market share of 39.5 percent versus close competitor Philippine Airlines, which had a 38.1-percent share.

    Cebu Pacific flies between Manila, Melbourne and Sydney. It also competes with Qantas, however the Australian carrier’s operations are limited to Manila and Sydney.

    “As more brand-new aircraft enters the CEB (Cebu Pacific) fleet, we are now in a position to seriously study the possibility of expanding to more destinations in Australia. We are encouraged by our performance in the Australia market,” Candice Iyog, vice president for marketing at Cebu Pacific, said in the statement.

    The airline said demand has been going up. For Nov. 2018, some 48,000 passengers flew between Manila, Melbourne and Sydney. The figure represented a growth of 31.3 percent. Cebu Pacific alone carried 18,971 passengers, or a year-on-year growth of 56 percent.

    Cebu Pacific flies five times weekly between Manila and Sydney and thrice a week between Manila and Melbourne. Cebu Pacific is the only low-cost carrier with direct service from Manila to Sydney and Melbourne.

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  • NTC extends migration date to eight-digit landline numbers

    NTC extends migration date to eight-digit landline numbers

    The Philippines’ National Telecommunications Commission has extended the migration to eight digit landline numbers in the Greater Metro Manila area by six months, at the request of the banking industry.

    The Bankers Association of the Philippines (BAP) and the Credit Card Association of the Philippines (CCAP) have requested more time to prepare for the introduction of eight digit landline numbers by implementing the necessary changes to their operations and systems.

    As a result, the NTC has ordered local operators to extend the migration date to October 6 from March 18.

    Both Globe Telecom and PLDT have announced they will comply with the demand and informed customers of the delay.

    Globe Telecom has stated that until January 5, customers still incorrectly dialing an old 7-digit number will hear a special announcement stating that the format has been changed to 8 digits.

    The company has also pledged to continue remaining customers of the upcoming migration over all available channels – including SMS, email and social media – up to the deadline.

    “We will make the necessary adjustments when it comes to our internal systems and communication efforts to ensure smooth service continuity for all of our affected customers,” Globe general counsel Froilan Castelo said.

    “Our teams are continuously working closely with the NTC and other telcos to assist affected customers before, during, and after the migration.”

  • Little Caesars Pizza Philippines ready to launch

    Little Caesars Pizza Philippines ready to launch

    Little Caesars Pizza Philippines will launch with its first restaurant next month. The move continues the expansion of the brand’s international footprint with new restaurants in Southeast Asia. The first restaurant to open under the new franchise relationship with local operator Palmtree PH Foods Corp will be located at the Metrosquare Building in Manila.

    Senior VP of International for Little Caesars Pizza Paula Vissing said he believes the Philippines is a perfect fit for the company’s international expansion due to its strong affinity for both pizza and value.

    Palmtree owner James Kodrowski, who manages a group of companies that operate in the region, said: “Little Caesars Pizza is exactly what this market needs … We believe that the Hot-N-Ready concept will have undeniable market appeal, as well as our commitment to excellent guest service, and superior value. It is our ambition to make Little Caesars the new favorite pizza of the Philippines.”

    Little Caesars is the third largest pizza chain in the world, currently operating in 23 countries and territories. It will also open its first location in Singapore in January.

  • H&M names first Philippine ambassador

    H&M names first Philippine ambassador

    H&M has named Nadine Lustre as its first Philippine ambassador.

    The endorsement deal comes with a special swimwear collection to be launched in the Philippines next week.

    Nadine Lustre has more than 5.9 million followers on Instagram, and is considered to have a highly visible presence among today’s youth.

    “It was a whole new experience working on the campaign. It didn’t feel like we were working at all. I felt creative the whole time, and that, for me, is one of the best feelings ever,” Lustre told.

    H&M has previously worked with some of the biggest names in pop culture including Beyonce, David Beckham, Diane Kruger and Namie Amuro.

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