JG Summit income climbs to P7.47 billion in H1

MANILA, Philippines - JG Summit Holdings Inc., the investment holding firm of taipan John Gokongwei, jacked up its first semester net income to P7.47 billion, buoyed by foreign exchange gains and steady improved performance across all units.

In a financial report submitted to the Philippine Stock Exchange yesterday, JG Summit said consolidated revenues rose 10 percent to P67.09 billion, with its food business accounting for the biggest chunk at P35.49 billion or 6.58 percent more than the P33.3 billion recorded a year ago. Air transportation came in second, pumping in P19.72 billion to total, up 18 percent year on year. 

Real estate and petrochemicals chipped in P6.67 billion and P3.09 billion, respectively, to total revenues.

JG Summit booked foreign exchange gains of P1.3 billion, a reversal of the net foreign exchange loss of P41.72 million a year ago due to a more stable peso.

Budget carrier Cebu Air reported a 29-percent decline in first half net earnings to P1.73 billion, weighed down by higher expenses, mainly fuel, which shot up 26.4 percent to P9.22 billion. Revenues, however, climbed 17.9 percent to P19.73 billion as passenger volume increased from 5.9 million to 6.9 million due to the increased number of flights.

Increased online bookings also contributed to the growth Cargo revenues likewise rose 17 percent to P1.13 billion.

Net earnings of food unit Universal Robina Corp. grew 24 percent in the first nine months of its fiscal year ending September this year to P6.13 billion, boosted by significant mark-to-market gains and strong contributions from the branded consumer foods group. Net sales improved to P53.049 billion from P50.58 billion.

URC bought out its partner’s 23-percent stake in URC International Co. Ltd. for P7.2 billion, allowing it to fully capture the strong growth in overseas operations.

The transaction brings URC’s stake in the offshore unit to 100 percent and values 100 percent of URC International at P31.3 billion.

JG Summit Petrochemicals Corp. booked first half revenues of P3.09 billion, up 10.8 percent year on year. It also booked a foreign exchange gain of P66.03 million compared with only P6.07 million a year earlier.

Robinsons Bank Corp. also performed well with first semester profit growing 67.7 percent to P244.15 million. Revenues rose 24 percent to P1.24 billion owing to higher trading gains.