JG Summit’s 2017 profit jumps 169%

Gokongwei-led JG Summit Holdings grew its 2017 net profit by 169 percent to P29.37 billion from year-ago level, when its earnings were weighed down by impairment losses from its investment in telecommunication giant PLDT Inc.

Excluding nonoperating and nonrecurring items, JG Summit’s consolidated core net income last year hit P29.56 billion, relatively flat from the 2016 level, as the rise in fuel prices gnawed at the earnings of the airline business. This was offset by the double-digit income growth in the petrochemicals business and rise in equity earnings from associates particularly, United Industrial Corp. Ltd. of Singapore, Manila Electric Co. and Global Business Power Corp.

Consolidated cash flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) reached P70.67 billion in 2017 from P69.37 billion in the previous year.

Consolidated revenue grew by 13.7 percent to P273.45 billion last year.

Universal Robina Corp. (URC) posted a 13.1-percent decline in net profit to P10.89 billion. Revenue rose by 11 percent to P125.01 billion, driven by the 30.1 percent increase in international sales of branded consumer food and 33.6 percent sales growth of the sugar business. The domestic business, however, declined to P58.95 billion from P59.19 billion on lower volume and challenging coffee business.

The budget airline under Cebu Air also posted an 18.9-percent drop in net profit to P7.91 billion as growth in revenue from higher passenger volume was offset by increased operating expenses due to the higher in fuel prices and weaker peso.

The petrochemical business grew its net profit by 16.9 percent last year to P5.99 billion. Revenue rose by 42.4 percent to P41.41 billion in 2017.

Property arm Robinsons Land Corp. posted a 2.3-percent rise in profit to P5.88 billion.

Robinsons Bank’s net profit rose by 19.8 percent to P307.39 million. Revenue rose by 31.2 percent P4.48 billion.

Revenue from JG Summit’s core investments, however, declined last year as dividend income received by the group dropped by 28.5 percent to P1.45 billion mainly due to lower dividend income declared by PLDT.