JG Summit profit jumps to P2.35B in 2002

The Gokongwei group’s JG Summit Holdings Inc. net income in 2002 jumped by 2.07 percent to P2.357 billion from P2.309 billion in 2001 as it posted higher revenues from its food, air transportation and real estate businesses.

In a disclosure to the Securities and Exchange Commission, JG Summit said its total revenues reached P48.297 billion, up by 9.3 percent from P44.18 billion in the previous year.

JG Summit’s food subsidiary, Universal Robina Corp. (URC), booked revenues amounting to P21.152 billion from P18.88 billion. URC credits its higher revenues to aggressive marketing strategies and advertising campaigns. URC’s popular food brands includes Payless noodles, Jack and Jill snacks, Blend 45 coffee, XO candies, Hunts Pork and Beans among others.

Cebu Pacific, JG Summit’s airline subsidiary, was also one of its strongest performers. Cebu Pacific recorded revenues of P5.16 billion in 2002 from P3.76 billion the previous year as a result of the airline’s entry into the international flights business, specifically Hong Kong, Seoul and Korea.

The holding firm’s subsidiaries in the real estate and hotel business, namely, Robinsons Land Corp. (RLC), also posted higher revenues at P3.853 billion from P3.4 billion. RLC owns and operates Manila Galleria Suites, Trion Homes Development Corp., Robinsons Homes Inc., Manila Midtown Hotel and many others.

Another major revenue earner for the Gokongwei group last year was JG Summit Petrochemicals Corp. with revenues of P4.348 billion from P3.962 billion in 2001.

However, JG Summit’s telecommunications arm, Digital Telecommunications Phils. Inc. (Digitel), recorded lower revenues in 2002 to P5.6 billion, from P6.5 billion the previous year.

JG Summit, expects to fare better this year with Digitel putting in $200 million to fund its cellular network, the newly-launched Sun Cellular. Sun is targeting an initial one million subscribers in its first two years of its operations.

Sun is hoping to compete with industry leaders Smart Communications and Globe Telecom by introducing cheaper call and text charges to the public.

Meanwhile, JG Summit has no plans for an overseas bond offering in the short term, a company official said yesterday.

Banking sources in Hong Kong said earlier this month the company was likely to mandate JP Morgan and Morgan Stanley to sell $150-million worth of five-year bonds.

Asked if JG Summit had plans to offer dollar-denominated bonds in the near term, the official, who asked not to be named, said: "We have no plans."

The company earlier said it had not engaged JP Morgan and Morgan Stanley.