JG Summit net profit fell 25% to P10.1B in 2013
Lance Gokongwei, president of JG Summit. AFP FILE PHOTO
MANILA, Philippines—The Gokongwei group-led conglomerate JG Summit Holdings Inc. posted a 25.5-percent decline in net profits in 2013 to P10.1 billion due to foreign exchange losses and a big decline in treasury earnings arising from volatile financial markets.
Taking out extraordinary items, JG Summit’s core profit, however, grew by 22 percent to P13.41 billion on higher core earnings from its branded consumer food and beverage, property and banking businesses. These units performed last year as follows:
* Universal Robina Corp. grew its net profit by 29.4 percent to P10.04 billion on higher sales volume and margin.
* Robinsons Land Corp.’s net profit went up by 5 percent to P4.47 billion as leasing and residential development revenues jumped at a double-digit pace; and,
* Robinsons Bank Corp. grew net earnings by 16 percent to P452.34 million.
On the other hand, airline unit Cebu Air’s net profit last year slid to P511.9 million from the previous year’s P3.57 billion on foreign exchange losses (P2.06 billion). The increase in revenues from the growth in passenger volume was partly offset by a reduction in average fares by 1.1 percent. An increase in aviation fuel expenses likewise gnawed on the airline operator’s earnings.
Meanwhile, JG Summit Petrochemicals Corp.’s net loss increased by 22.2 percent to P639.91 million due to the technical shutdown of production.
For JG Summit, the 8.1 percent depreciation of the peso against the greenback resulted in a foreign exchange loss of P4.1 billion in 2013, a turnaround from the P1.4-billion foreign exchange in the previous year. At the same time, mark-to-market gains from treasury holdings shrunk to P308.99 million from the previous year’s P1.87 billion.
JG Summit’s consolidated cash flow as measured by earnings before interest, taxes, depreciation or amortization (EBITDA), however, rose by 15.7 percent to P34.17 billion. Group-wide revenues rose by 8.9 percent to P147.63 billion.
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