JG Summit nets P2.5B in 1st half
MANILA, Philippines—JG Summit Holdings Inc. grew its first-semester net profit by 25 percent year on year to P2.56 billion as foreign exchange and other treasury gains rose alongside an increase in core earnings.
Core earnings before tax increased by 12.9 percent for the first six months to P9.9 billion while cash flow based on earnings before interest, taxes, depreciation and amortization (Ebitda) reached P12.86 billion, down by 6.2 percent year on year.
The increase in six-month net income was buoyed by the further appreciation of the peso against the US dollar in the second quarter of the year, resulting in higher foreign exchanges gains recorded by the group during the period.
Net foreign exchange gain for the six months amounted to P1.30 billion, a turnaround from the net foreign exchange loss of P41.72 million a year ago. On the other hand, JG Summit booked mark-to-market gains of P960.60 million during the period, 94.7 higher year on year, due to recovery of its bond investments and gains from additional investments acquired during the period.
Six-month consolidated revenues were up 10 percent to P67.09 billion due to the strong performance of all business units. However, equity in net earnings of associates declined by 26.3 percent year on year to P872.2 million due to reduced income from its investment in Singaporean property developer UIC Ltd. Lower rental income, drop in sale of properties and lower revenues from hotel operations dampened UIC’s earnings.
Consolidated cost of sales and services for the first half of the year rose by 14.1 percent year on year to P47.69 billion. The increase is higher compared to revenue growth due to the significant increase in the cost of sales and services in its food and airline business. In the case of its airline business (Cebu Air), the higher cost was propelled by higher aviation fuel prices during the period.
Group-wide operating expenses increased by 14.2 percent to P10.91 billion as a result of higher general and administrative expenses again, in the airline operations and food business.
The unlisted subsidiary JG Summit Petrochemicals Corp. trimmed its net loss to P55.60 million in the first six months from P72.06 million year on year.
Robinsons Bank, also unlisted, booked a net income of P244.15 million during the first six months, up by 67.7 percent year on year, as higher trading gain boosted revenues.
