JG Summit core profit slid 8% in first quarter

Photo from JG Summit Holdings/FACEBOOK

MANILA, Philippines – JG Summit Holdings Inc. saw its core net income decline in the first quarter despite stronger operating performance across key businesses.

The Gokongwei-led conglomerate said on Wednesday that its core net income after taxes slipped 8 percent to P6.9 billion in the January-to-March period.

The decline came even as consolidated revenues climbed 7 percent to P99.9 billion while operating profits rose 9 percent to P17.1 billion.

The company attributed the drop in core earnings to higher parent-level interest expenses linked to debt absorbed from its discontinued petrochemical unit, a larger minority share in Robinsons Land Corp.’s (RLC) real estate investment trust, and softer sugar prices affecting its commodities business.

Meanwhile, net income from continuing operations fell 27 percent to P5.5 billion after factoring in foreign exchange translation losses on dollar-denominated debt.

Still, reported net income jumped 19 percent to P5.2 billion as losses from discontinued petrochemical operations narrowed significantly.

JG Summit president and CEO Lance Gokongwei said the group was facing a more volatile environment marked by geopolitical tensions, rising fuel costs and peso depreciation.

“We are not immune to the headwinds facing our portfolio and the broader economy,” Gokongwei said.

He noted that the conglomerate had implemented austerity measures, disciplined cost management and price adjustments to protect margins.

Food maker Universal Robina Corp. posted a 6-percent increase in revenues to P47.9 billion. INQ