In a filing with the Securities and Exchange Commission (SEC), JG Summit said its revenues for the period January to March grew by 15.2 percent to P16.4 billion from only P14.23 billion in the same period in 2004. This was driven by the continued improvement in sales and revenues of the company’s core businesses and the revenue contribution of its mobile phone business as well.
Bulk of total revenues or P7.79 billion came from the Gokongwei group’s food unit, Universal Robina Manufacturing Corp., reflecting an increase of 21.9 percent from the previous level’s P6.39 billion.
Another major contributor was Digital Telecommunications Phils. Inc. which pumped in P2.15 billion in revenues, 22 percent higher than the P1.76 billion reported a year earlier.
Despite higher revenues, Digitel incurred a net loss of P451.29 million, up 50.7 percent from the previous year’s P299.46 million. This was attributed to higher operating expenses and charges.
As for JG Summit’s real estate business, Robinsons Land contributed P1.26 billion or an increase of 26 percent from the year ago’s P1 billion.
Cebu Air, the Gokongwei family’s airlines unit, incurred a net loss of P54.1 million, a reversal from the P91.8 million profit reported a year ago. The turnaround was a result of higher operating expenses.
Revenues rose by only three percent to P1.85 billion.
JG Summit said the rising cost of services in the airline business, due to higher fuel costs, and in telecommunications, because of the expansion of cellular operations, squeezed gross margin.
Gross profit amounted to only P4.83 billion from P4.7 billion while operating expenses rose nine percent to P3.97 billion.
JG Summit said interest expenses increased 3.3 percent year on year to P1.54 billion, due in part to the appreciation of the peso against the dollar.
The company expects to sustain its growth this year with most of its businesses posting an improvement in their financial performance.
JG Summit is setting aside nearly P70 billion this year and next year for the continued expansion of its businesses.
Of the total capital budget, $300 million will be used to bankroll the continued expansion of the group’s wireless business which has gained a niche in the lucrative telecommunications market by offering unlimited calls and text messaging for its subscribers.
RLC, on the other hand, needs between P3 billion and P4 billion for the construction of new malls, mixed-use complexes, high-rise buildings, and middle-to-upscale residential subdivisions. Other funds will be used for the refurbishment of the Cebu Midtown Hotel.
RLC intends to build two to three new commercial centers every year to have a total of at least 30 shopping malls throughout the country by 2010. As of March this year, RLC has a total mall network of 18.
For this year, the company plans to expand its malls in Lipa, Batangas and Dasmariñas, Cavite.
URC, on the other hand, has allotted P3 billion this year for the continued expansion of its core branded food business as it aims to be a regional powerhouse in the snacks, candies, wafer, biscuit and chocolate markets.
Meanwhile, Cebu Air needs $300 million to $400 million for the purchase of new aircraft as it hopes to dislodge Philippine Airlines as the top airlines in the country.
Cebu Air is currently the second largest airline in the Philippines offering domestic flights to and from major cities in the country and international flights from Manila and Cebu to destinations in Asia. It claims a 38-percent market share.
Some $450 million has been earmarked to build the group’s petrochemicals business.