JG Summit nets P16B

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.

Excluding non-recurring items, JG Summit’s nine-month net profit rose by 39.2 percent year-on-year to P20.69 billion on the double-digit expansion in contribution from core units. Aviation unit Cebu Air, in particular, benefited from the decline in fuel prices while the petrochemical business – which resumed commercial operations in November 2014 – has turned profitable after many years of losses.

On the other hand, non-recurring 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:

Food and beverage group Universal Robina Corp. grew revenues by 17.8 percent year-on-year to P82.04 billion on improved sales of branded consumer goods in domestic 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.

Airline unit Cebu Air boosted revenues by 9.9 percent to P42.26 billion on higher passenger volume. Net profit surged by 71 percent to P3.56 billion.

Property arm Robinsons Land Corp. grew revenues by 15.4 percent year-on-year to P14.6 billion on additional contribution from seven new malls, two office buildings and three new hotels. Net profit improved by 23.8 percent to P4.18 billion.

JG Petrochem grew revenues to P19.44 billion from P1.02 billion following the resumption in operations. Net profit amounted to P1.3 billion, a reversal of the net loss of P416.22 million in the previous year.