MANILA, Philippines?JG Summit Holdings booked a 36.9-percent year-on-year decline in net income in the first quarter to P2.78 billion due to lower foreign exchange gains and smaller profit share from budget carrier Cebu Pacific.

In a regulatory filing, JG Summit of the Gokongweis said that while some of its business units had performed well, its share in the profit of Cebu Pacific was reduced after the airline operator went public in October last year.

The group sold 35 percent of its stock in the airline during the initial public offering.

As Cebu Pacific?s flights increased, it also consumed more fuel, jacking up its aviation fuel expenses at a time when global oil prices were rising.

Aside from the diluted interest, lower foreign exchange dampened the carrier?s first-quarter net income to P1.2 billion from P1.56 billion last year.

Group-wide, JG Summit also booked lower foreign exchange gains this period as the peso held steady in the past three months.

Outside non-recurring items, core earnings likewise decreased by 14.2 percent in the first three months to P4.17 billion from a year ago.

Cash flow as measured by earnings before interest, taxes, depreciation and amortization also declined by 4.9 percent to P8.37 billion from a year ago.

Consolidated revenues were up by 14.1 percent from P29.73 billion to P33.93 billion due to the strong performance of all business units. However, equity in net earnings of associates declined by 27.5 percent to P529.4 million during the period.

The food business also posted a 24.4-percent increase in sales due to an increase in volume during the first quarter.

Consolidated operating expenses increased by 15.5 percent as a result of higher general and administrative expenses in telco, airline operations and food business.

JG Summit is a holding company for the following companies: Universal Robina Corp. (branded consumer foods, agro-industrial and commodity food products), Robinsons Land Corp. (property development and hotel management), Digital Telecommunications (telecommunications), Cebu Air (air transportation), JG Summit Petrochemicals Corp. (petrochemicals), and Robinsons Savings Bank (banking services).

Property unit RLC earlier reported that net income attributable to equity holders of parent company for the six months to March amounted to P2.04 billion, up by 13 percent year on year.

The Gokongwei group recently signed an agreement to give up its controlling stake in Digitel in favor of Philippine Long Distance Telephone Co. in exchange for a 12.8-percent stake in PLDT. But JG Summit also committed to sell 2.8 percent of its PLDT stake to NTT Docomo of Japan, keeping the remaining 10 percent.