JG Summit net profit in first 9 months of 2015 up

Gokongwei-led conglomerate JG Summit Holdings Inc. grew its net profit in the first nine months by 2.6 percent year-on-year to P16.11 billion as treasury losses curbed core earnings.

But excluding nonrecurring items, JG Summit’s nine-month net profit rose by 39.2 percent year-on-year to P20.69 billion on the back of the double-digit expansion in contribution from core units, particularly aviation unit Cebu Air, which benefited from the decline in fuel prices. The petrochemical business, which resumed commercial operations in November 2014, has also turned profitable after many years of losses.

On the other hand, nonrecurring items included the one-time gain of P1.45 billion from the sale of Jobstreet that boosted comparative earnings in the previous year. For this year, JG Summit also booked significantly higher losses on foreign exchange and market valuations.

Dividend income dropped by 15.4 percent year-on-year in the first nine months to P2.82 billion on lower dividends declared by Philippine Long Distance Telephone Co. for the period. Share in earnings from Singaporean property developer UIC and local utility Manila Electric Co. rose by 4.7 percent year-on-year to P6.03 billion.

Meanwhile, consolidated cash flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) rose by 31.8 percent year-on-year in the first nine months to P47.2 billion.

JG Summit’s revenues grew by 27.4 percent year-on-year to P169.78 billion due to the strong performance of the following subsidiaries in the first nine months of 2015:

Universal Robina Corp. grew revenues by 17.8 percent to P82.04 billion on improved sales of branded consumer goods in local and overseas markets, including sales contribution from newly acquired New Zealand biscuit-maker Griffin. Net profit rose by 8.7 percent to P9.46 billion.