JG Summit nets P13.53 B in 2012

MANILA, Philippines - The strong performance of its property and food manufacturing businesses allowed JG Summit Holdings Inc. of taipan John Gokongwei to substantially grow its earnings last year.

In a regulatory filing, JG Summit said its net income from continuing operations surged nearly 60 percent to P13.53 billion, P8.48 billion in 2011.

But if the P13.04-billion non-recurring gain from the sale of Digital Telecommunications Philippines Inc. to Philippine Long Distance Telephone (PLDT) in 2011 is included, JG Summit’s earnings will record a 37-percent decline last year.

“Consolidated revenues grew 9.5 percent from P123.5 billion in 2011 to P135.25 billion in 2012 as all its subsidiaries posted decent revenue growth,” the holding firm said.

For instance, dividend income jumped to P3.2 billion from P244.96 million in 2011 mainly due to dividends received from PLDT.

Equity income from associates and joint ventures dropped 9.4 percent to P2.01 billion due to the depressed income of Singapore-based affiliate United Industrial Corp. Ltd.

JG Summit said it also benefited from lower financing costs, which slipped 22.4 percent to P1.59 billion following the full settlement of a $300-million loan.

“The group also recognized a foreign exchange gain of P1.4 billion, compared to a foreign exchange loss reported [in 2011] that amounted to P245.88 million,” JG Summit said, attributing the income to the strengthening of the peso versus the dollar.

For its operating units, the conglomerate’s food manufacturing arm URC posted roughly 70 percent growth in net income to P7.74 billion in fiscal year 2012 from P4.64 billion a year ago.

URC, the biggest revenue contributor in JG Summit’s revenues accounting for 52.6 percent, grew its sales six percent to P71.20 billion in its fiscal year that ended in September.

It was driven by higher sales for branded products locally and abroad. URC is the company behind brands like Jack n’ Jill, Hunt’s, C2, Blend 45, Uno Feeds and Cream All.

The property business also contributed more to JG Summit. Robinsons Land Corp.’s (RLC) net income rose seven percent to P4.24 billion as total gross revenues grew six percent to P13.52 billion.

RLC reported better revenues in its commercial centers, residential sales, hotel and office segments.

Budget Airline Cebu Air Inc., the operator of the Cebu Pacific brand, posted a slight drop in its income to P3.6 billion from P3.62 billion in 2011.

High fuel cost offset the 11.7-percent increase in gross revenues to P37.9 billion, the company said.

Meanwhile, JG Summit Petrochemicals Corp. sank deeper as its net loss widened 36.4 percent to P523.73 million from P383.97 million in 2011.

JG Summit said the gross revenues of the petrochemical unit sank 11.7 percent to P5.11 billion due to lower production.

The financial service business recorded a slight increase in earnings. Robinsons Bank Corp.’s net income inched up 1.4 percent to P389.9 million mainly due to the 7.3 percent uptick in revenues, JG Summit said.