JG Summit profit more than doubles to P13 B

MANILA, Philippines - Profits of tycoon John Gokongwei’s JG Summit Holdings Inc. more than doubled in the first semester amid hefty gains from several investments.

JG Summit pocketed P13 billion in earnings in the six-month period, up 151.3 percent from P5.17 billion last year, the company told the local bourse yesterday.

“The P8.12-billion net income for equity holders of the parent for the second quarter of fiscal 2014 is mainly due to some foreign exchange gains, recognition of equity earnings from Manila Electric Co. (Meralco) and gain on sale of JobStreet amounting to P1.45 billion,” JG Summit said.

Core net income, which discounts the net effect of gains/losses on foreign exchange, market valuations, derivative transactions and extraordinary items, improved 30.5 percent to P10.32 billion from P7.91 billion a year ago.

JG Summit said its consolidated revenues rose 17.1 percent to P88.53 billion from P75.6 billion due to the strong performance of its major subsidiaries.

Total revenues of snacks and beverage giant Universal Robina Corp. climbed 13.5 percent to P45.74 billion. Property arm Cebu Air Inc.’s revenues jumped 23 percent to P26.72 billion. Property arm Robinsons Land Corp. gained 6.7 percent to P8.45 billion given the aggressive sales and marketing efforts of its subsidiaries.

As of end-June, JG Summit Petrochemicals operated marginally as the integrated naphtha cracker and polymer operation went into commissioning stage and its first trial runs.

Equity in net earnings of associates, primarily from investments in UIC and Meralco, more than quadrupled to P3.81 billion from P900.92 million.

JG Summit said its operating expenses rose by a fifth to P15.02 billion from P12.47 billion “due to higher selling, general and administrative expenses in the airline and food business units.”

The Gokongwei family’s investment firm has jacked up its capital spending to P44.2 billion this year from P35.9 billion in 2013 to support key initiatives of its operating units.