JG SUmmit H1 profit down

Gokongwei-led conglomerate JG Summit Holdings saw a 32.8-percent year-on-year drop in first semester net profit to P9.8 billion on slower earnings from its food and beverage, airline and petrochemical businesses alongside foreign exchange losses.

For the second quarter alone, JG Summit’s consolidated net income fell by 29.7 percent year-on-year to P5 billion. Excluding non-recurring items, JG Summit’s core net profit fell by 22.9 percent year-on-year to P5.9 billion in the second quarter.

“While we continue to face the challenges arising from inflation and the weaker currency further exacerbated by tougher competitive dynamics, we are delighted to see improvements in our second quarter results,” JG Summit president and chief executive officer Lance Gokongwei said in a press statement on Friday.

The 29.7-percent year-on-year decline in JG Summit’s second quarter net profit marked an improvement from the 35.8-percent contraction seen in the first quarter.

“We believe that we can navigate this environment with the fundamentals of each of our businesses intact and issues are more cyclical than structural. The group’s balance sheet is also strong to withstand these short-term challenges and we plan to continue investing for longer term growth,” Gokongwei said.

Group-wide revenues expanded by 11.4 percent year-on-year to P74.6 billion in the first semester. —DORIS DUMLAO-ABADILLA