PEPSI-COLA Products Philippines Inc. (market symbol: PIP) may be keeping too much retained earnings, which, as of March 31, stood at more than P7.228 billion.
If you happen to be a stockholder of the cola company and are in the stock market for dividends, you won’t like a listed stock good only for speculation. Pepsi-Cola, though, has a reason to keep more than P7.228 billion in its books because it is using the accumulated net profits for expansion.
If in public ownership reports listed companies define their majority stockholders as principal or substantial stockholders, why shouldn’t Pepsi-Cola refer to the public as significant partners? And as significant partners, they deserve more dividends.
Well, why not? After all, Pepsi-Cola said in its public ownership report that 1.334 billion, or 36.113 percent, of its 3.694 billion outstanding common shares are owned by the public. That’s a lot of Pepsi-Cola drinkers, who will receive P0.066 dividend per share on June 3.
The payment of P0.066 dividend will reduce Pepsi-Cola’s retained earnings by P243.79 million, which is equivalent to 3.37 percent of P7.228 billion retained earnings.
By the way, Pepsi-Cola is allocating P4.5 billion to a continuing expansion program. That’s one way of keeping up with the competition.
An RYM subsidiary
Bright Kindle Resources & Investments Inc. (market symbol: BKR) is formerly Bankard Inc., then a wholly owned subsidiary of Philippine Commercial International Bank. All of the company’s more than 1.528 billion outstanding common shares are listed on the Philippine Stock Exchange (PSE).
BKR is listed as a subsidiary of RYM Business Management Corp., which holds 1.170 billion common shares, or 76.56 percent. The 10 members of the board hold a combined 102.092 million BKR common shares, or 6.67 percent. Among them, Macario U. Te is the biggest stockholder, with 51.001 million common shares, or 3.34 percent. Of that, he directly owns 16.001 million, according to a public ownership report.
RYM is also a significant stockholder of Benguet Corp. (market symbol: BC). It holds 31.235 million BC shares, or 16.01 percent.
Diane Madelyn C. Ching is listed in the same POR as owner of 159,000 BKR common shares. She is the company’s corporate secretary, compliance officer and systems administrator for the PSE.
In the same POR, Bright Kindle attributed to insiders the ownership of a total of 1.272 billion shares, or 83.247 percent, leaving the public with 256.063 million BKR shares, or 16.753 percent.
A separate list of BKR’s 100 top stockholders shows that most of BKR’s outstanding shares are lodged with PCD Nominee Corp., making PCD the biggest record stockholder with 1.514 billion shares, or 99.06 percent. The PCD Nominee also holds for foreigners 10.271 million shares, or 0.067 percent.
In its first-quarter financial report, Bright Kindle Resources said its retained earnings dropped to P165.89 million from P190.15 million in the same period in 2015.
More public than others?
Bright Kindle is the single biggest stockholder among the four principal stockholders of Marcventures Holdings Inc. (market symbol: MARC). It holds 600 million shares, or 32.94 percent. The three others are Arturo L. Tiu, with 87.629 million shares, or 4.81 percent; Sonia T. Techico, 130 million shares, or 7.14 percent; and Dy Chi Hing, 218.5 million shares, or 12 percent.
With insiders owning a total of 1.048 xxxxx MARC shares, or 57.534 percent, the public stockholders hold 773.452 million shares, or 42.466 percent. (The POR listed only the equivalent of 42 percent.)
In the list of Marcventures’ top 100 stockholders, PCD Nominee Corp. holds 1.483 billion MARC shares, or 81.44 percent for Filipinos and 31.598 million shares, or 1.73 percent, for foreigners.
Foreigners are also the company’s public stockholders, who also include Filipino-owned corporate stockholders such as Stinson Properties Inc., with 87.835 million shares, or 4.82 percent; Sureguard Properties Inc., 86.514 million shares, or 4.75 percent; Nyonlner Properties Inc., 86.514 million shares, or 4.75 percent; Glorious Decade Properties Inc., 30 million shares, or 1.65 percent, and 13.013 million shares, or 0.71 percent.
Marcventures’ retained earnings as of March 31 totaled P836.196 million, down from P911.018 million as of Dec. 31, 2015.
PRIMEX Corp. (market symbol: PRMX) will hold its annual stockholders’ meeting on June 17. Expected to attend are the holders of 323.333 million outstanding common shares, of which the Ang family controls 235.242 million shares, or 72.755 percent.
A public ownership report listed the following directors, who are all insiders, and the number of Primex shares each of them owns. They include the Ang brothers, namely Ernesto, with 75.325 million, or 23.29 percent; Eduardo and Emilio, 40.056 million, or 12.39 percent each; Edgard, 38.647 million or 11.95 percent; Ericson, 39.724 million, or 12.28 percent; Jossie O. Chan, 1.35 million, or 0.41 percent; Karlvin Ernest Ang, son of Ernesto, 80,000, or 002 percent; Willy G. Ong, 4,000 and Benito Chua Co Kiong, 1,000.
With the insiders owning a total of 235.242 million Primex shares, or 72.755 percent, the public holds a total of 88.092 million shares, or 27.245 percent.
In a top 100 stockholders’ filing, Primex listed only 16 stockholders topped by PCD Nominee Corp., 77.554 million or 23.986 percent for Filipinos, and 3.033 million shares, or 0.938 percent, for foreigners.
In a consolidated financial filing, Primex reported retained earnings of P230.762 million as of March 31.