Calata posts 11% earnings drop

MANILA, Philippines - Agricultural products manufacturer Calata Corp. reported a net income of P89.2 million in the first half, down 11 percent from the same period a year ago.

In a regulatory filing, Calata said revenues improved seven percent to P1.4 billion due to higher sales of agro-products.

Sale of agro-products went up 18 percent to P1.3 billion as a result of expanded market penetration of its distribution business.

Meat product sales grew 36 percent to P76 million.

However, there was no sale of swine livestock during the period compared to the P68.4 million earned last year.

The company’s gross expenses also went up nine percent to P1.2 billion.

Calata is now facing delisting from the Philippine Stock Exchange and is spinning off its assets to privately-held firm Agriphil Corp, in line with the sale of 81 percent of the company to Millennium Global Holdings Inc.

The company of self-made tycoon Joseph Calata faces delisting for allegedly violating the PSE’s disclosure requirements.

The PSE counted 55 violations of PSE disclosure rules from Oct. 6, 2016 to June 20 this year.

Specifically, Calata failed to make the appropriate disclosure of the disposition of shares by the company’s directors and principal officers. It also did not provide updates of previous disclosures on material information that may affect investor decision.

The PSE suspended trading in Calata shares prior to initiating delisting procedures.

Apart from breach of disclosure rules, Calata was also found to have violated the “blackout rule” which prohibits directors and principal officers who have obtained material non-public information to trade their company’s shares within a prescribed period.