JG Summit profit lower at P22.4B; costs blamed
Credit to Author: LISBET K. ESMAEL| Date: Tue, 16 Apr 2019 16:16:49 +0000
HEADWINDS in its airline and manufacturing units caused listed JG Summit Holdings Inc.’s core net income to fall by 24 percent to P22.4 billion last year from P29.56 billion in 2017.
The Gokongwei-led conglomerate told the Philippine Stock Exchange on Tuesday that the reduced profit was due to “higher fuel and input costs, as well as and the weaker peso” faced by Cebu Air Inc. (Cebu Pacific), JG Summit Petrochemical Corp. and Universal Robina Corp.
Net income attributable to equity holders of the parent company dipped to P19.19 billion last year from 2017’s P29.37 billion. Revenues rose to P291.92 billion from P273.45 billion previously.
Earnings before interest, taxes, depreciation and amortization decreased to P65.83 billion last year from 2017’s P70.67 billion.
Universal Robina saw its net income drop by 15 percent year-on-year to P9.2 billion, despite its revenues growing by 2 percent to P127.8 billion.
Property arm Robinsons Land Corp.’s net profit surged by 40 percent year-on-year to P8.2 billion, driven by the 31-percent growth in revenues, which reached P29.5 billion.
Cebu Pacific’s core net income slid by 33 percent to P5.9 billion due to challenges faced by the aviation sector. Its revenues, however, climbed by 9 percent to P74.1 billion from P68.03 billion on the back of strong demand in air travel and its cargo business.
Petrochemical subsidiary JG Summit Petrochemicals posted a net profit of P1.1 billion last year.
Banking unit Robinsons Bank saw its net income climb by 3 percent to P318 million year-on-year, and revenues by 37 percent to P6.1 billion.
“We may say that the group braved a perfect storm in 2018. Our cyclical and food businesses were challenged by high inflation and fuel prices [and a] weaker peso, as well as intense competitive dynamics,” JG Summit President and Chief Executive Officer Lance Y. Gokongwei was quoted as saying in the disclosure.
“We are more optimistic in 2019, but we would remain vigilant of various risks and continue strengthening our diverse strategic business units to ensure balanced sources of profitability,” he added.
JG Summit shares added P1.60 or 2.61 percent to finish at P62.90 apiece on Tuesday.
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