Agrinurture’s unusual harvest of a P464-M deficit

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Emeterio Sd. Perez

Emeterio Sd. Perez

OWNERSHIP profile. Ambassador Antonio L. Cabangon Chua owns 19.009 million shares, or 26.123 percent, in City State Bank Inc. Of his total holdings, he directly holds 14.206 million shares, or 19.523 percent, and indirectly owns 4.803 million shares or 6.6 percent that are held for him by Top Ventures Investments & Management Corp.

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City State also listed two family members as significant stockholders. D. Alfred A.
Cabangon owns 15.783 million, or 21.690 percent, of which 7.499 million shares, or 10.306 percent, are held by Fortune Life Insurance Corp., while J. Antonio A. Cabangon Jr. holds 5.008 million shares, or 6.882 percent, which are listed in the name of Fortune General Insurance Corp.

Fortune Insurance and Top Ventures belong to the ALC Group of companies.

Feorelio Bote, the fourth individual stockholder of City State Bank, directly owns 4.302 million shares, or 5.913 percent.

Executive compensation
City State Bank expects its top five executives to remain with it until December 31, 2014.

It named them in a compensation filing as Rey Delfin, president; Vivian Rada, first vice president; and Eduardo Olavario, Jeffrey Tantiado, and Emerson Igarta, vice presidents.

The bank said it paid its top five executive officers as a group P7.767 million in 2012 and P7.527 million in 2013, the same compensation it said it would pay them this year.

In a footnote to the filing, City State Bank said it does not pay it members of the board regular monthly compensation. Instead, each of them gets “P5,000 for every board and committee meeting attended.”

A financial filing shows City State Bank has been generous in employee benefits. In 2013, these perks increased to P100.212 million, from P87.803 million in 2012 and P67.986 million in 2011.

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WHAT a loss!
In the first three months this year, Agrinurture Inc. (ANI) reported a consolidated net loss of P14.688 million against net profit of P20.147 million in the same period in 2013.

The company reported the huge first-quarter net loss in a consolidated statement of income, which came about despite revenue which increased 31.148 percent to P988.850 million from P753.995 million.

As a result, ANI reported a deficit of P490.183 million as of March 31, 2014.

An entry in the quarterly financial filing caused much damage to ANI’s profitability. These were “general and administrative expenses” which soared to P234.567 million, which was 2.4 times the amount of P97.733 million it incurred in the first three months of 2013.

Deficit harvest
Agrinurture Inc. (ANI) explained in a footnote to its financial filing that of its “general and administrative expenses,” “salaries, wages and other employee benefits” accounted for P69.031 million, or 29.429 percent.

Said amount as an expense for workers’ benefits was misleading because the amount of P69,030,791 represented “compensation of Key Management Personnel.”

Something must be wrong in the filing because in its annual financial statement, it said “total remuneration of key management personnel, composed mostly of short-term employee benefits and provision for retirement benefits that are included under ‘Personnel costs’ in the consolidated statement of income, amounted to P31,119,735.34 in 2013 (P37,656,328 and P13,350,334 in 2012 and 2011, respectively.)”

Ironically, ANI has been generous to its management team “up to the President” even if, as of December 31, 2013, it has piled up a deficit of P463.909 million.

Unusual surge
Arthaland Corp. made news on May 28 when its share price surged 49.160 percent to P0.3550 from P0.2380.

To the market watchers of the Philippine Stock Exchange, Arthaland’s performance was unusual and the exchange asked the company to explain.

As usual, Riva Khristine Maala, head of Arthaland’s legal affairs relations, had no explanation for the stock’s sudden climb. “We are unaware of any information relating to the unusual price movement of ALCO’s common shares,” she wrote the PSE.

In a consolidated quarterly financial filing, Arthaland reported net income of P110.884 million, up 5.267 percent from P105.336 million in the first quarter of 2013. Its profit resulted from revenue from real estate sales, which fell 9.559 percent to P776.506 million from P858.573 million. As of March 31, 2014, Arthaland had piled up retained earnings of P575.685 million.

esdperez@gmail.com

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1 Comment

  1. Gustave Fernandes on

    isn’t it a coincidence, or stocks related to food/agri are trending shady? first calata (CAL), then alliance select (FOOD), then Agrinurture (ANI).