Big conglomerates post 9-month profits
Four conglomerates led by some of the country’s richest families announced a profit in the nine months through September 2015, highlighting the strength of the domestic economy despite worries of a global slowdown.
Gokongwei-led JG Summit Holdings Inc. posted a net income of P16.11 billion, up 2.6 percent, during the period while Lucio Tan’s LT Group Inc. said profit hit P4.71 billion, up 88 percent. Property tycoon Andrew Tan’s Alliance Global Group Inc. (AGI) said profit during the nine month period eased to P10.6 billion from P11.43 billion a year ago.
JG Summit is involved in food and beverage (Universal Robina Corp.), banking (Robinsons Bank Corp.), property development (Robinsons Land Corp.), airlines (Cebu Pacific Air) and petrochemicals (JG Summit Petrochemicals Group).
LT Group owns Philippine National Bank, Asia Brewery Inc., Tanduay Distillers, half of cigarette maker PMFTC Inc. and Eton Properties Philippines Inc.
AGI’s units include property builder Megaword Corp., leading liquor maker Emperador Inc., casino operator Travellers International Hotel Group Inc. and Golden Arches Development Corp., which operates the McDonald’s fast-food chain in the Philippines.
Filinvest Development is involved in property development (Filinvest Land Inc.), power (FDC Utilities Inc.), banking (EastWest Bank), hotel operations and sugar production.
JG Summit said that core earnings in the nine-month period were up 39.2 percent to P20.69 billion.
“The increase in core earnings is due to the double-digit income growth in our core operating businesses, particularly Cebu Air, which benefited significantly from the substantial reduction in fuel prices and our petrochemical business, which resumed commercial operations last November 2014,” JG Summit said.
JG Summit said revenue was also up 27.4 percent to P169.78 billion on gains across its core businesses.
LT Group, meanwhile, noted that PNB accounted for 59 percent of its income at P2.78 billion, followed by Asia Brewery at P693 million.
The tobacco business added P523 million or 11 percent to the total while Tanduay accounted for P337 million or 7 percent. Eton’s contribution was P196 million or 3 percent.
Filinvest Development said revenues and other income jumped 32 percent to P36.4 billion. It said real estate and banking accounted for 41 percent and 37 percent, respectively while power contributed 13 percent and sugar, 7 percent. The balance, it said, came from hotel operations.
AGI said revenues during the period rose to P99.6 billion from P89.52 billion last year.
“The group’s financial performance continues to be compelling despite challenges faced by the gaming industry. We are strengthening the building blocks of sustained profitability and shareholder value in the long term,” AGI president and chief operating officer Kingson U. Sian said in a stock exchange filing.
AGI said unit Megaworld achieved a net income of P8.35 billion during the first nine months of 2015, higher by 12.52 percent when removing non-recurring gains.
Emperador posted a net income of P4.7 billion this year, up about 3 percent year on year, the filing showed. Travellers International, owner and operator of Resorts World Manila, remained profitable with a net income of P2.8 billion. Golden Arches reported a net income of P520 million.