JG Summit profit up by 60%By Doris C. Dumlao
Philippine Daily Inquirer
Gokongwei-led JG Summit Holdings Inc. grew its core net profit last year by 59.6 percent to P13.53 billion, aided by stable earnings from core operating units, treasury gains and dividends from newly acquired interest in telecom giant Philippine Long Distance Telephone Co.
But with the one-time gains from the sale of telecom unit Digital Telecommunications Philippines Inc. factored in JG Summit’s comparative 2011 results, net profit for 2012 declined by 37.1 percent, according to the disclosure to the Philippine Stock Exchange.
JG Summit said core earnings before taxes and extraordinary gains from the Digitel transaction in the comparative year had grown by 20 percent to P19.54 billion last year. Consolidated cash flow or earnings before interest, taxes, depreciation and amortization (Ebitda) reached P29.1 billion, 15.3 percent higher year on year.
When JG Summit gave up its controlling stake in Digitel in 2011, the share-swap portion of the deal allowed it to acquire an 8-percent interest in PLDT. Dividends from the interest in PLDT amounted to P2.95 billion last year.
JG Summit said the continued appreciation of the peso against the dollar and the recovery in the market value of its bond and equity investments, had contributed to the earnings growth. Mark-to-market gains from financial assets amounted to P1.79 billion for 2012, a reversal of the net market valuation loss of P655.49 million in 2011. The conglomerate also booked a foreign exchange gain of P1.4 billion last year versus the P245.88 million loss in the previous year.
Consolidated revenue grew by 9.5 percent to P135.25 billion as all subsidiaries posted “decent” growth. However, equity income from associates and joint ventures declined by 9.4 percent to P2.01 billion due to the decline in the income of Singapore-based affiliate, property developer United Industrial Corp. Ltd.
Universal Robina Corp.’s net profit increased by 66.9 percent to P7.74 billion on the back of a 6-percent growth in consolidated sales to P71.2 billion.
Cebu Pacific posted a net income of P3.6 billion, slightly lower than the previous year’s P3.62 billion.
Robinsons Land Corp. grew its net profit by 7 percent to P4.24 billion on the back of a 6-percent growth in revenue to P13.52 billion.