JG Summit income rises to P7.44B in Jan-March

Credit to Author: ANGELICA BALLESTEROS, TMT| Date: Tue, 14 May 2019 16:19:52 +0000

LISTED JG Summit Holdings Inc. saw its consolidated net profit from shareholders surge by 54.2 percent to P7.44 billion in the first quarter from P4.82 billion in the same period last year, buoyed by its strong airline and property businesses.

In a regulatory filing on Tuesday, the Gokongwei-led conglomerate said it mainly attributed the increase to a double-digit growth in airline subsidiary Cebu Air Inc. and property arm Robinsons Land Corp., coupled with foreign-exchange gains and market valuation gains on the group’s financial assets in the period, which partially offset the decline in petrochemicals business.

Its consolidated core net income after taxes, excluding non-operating and non-recurring gains, however, was flat at P6.35 billion.

Consolidated revenues, meanwhile, grew by 8.7 percent to P76.26 billion from P70.15 billion, the bulk of which was credited to banking unit Robinsons Bank Corp., followed by Cebu Air (16 percent), and the rest from other businesses.

Cebu Air, which operates Cebu Pacific, saw its net income soar by 138.4 percent to P3.43 billion in January to March from P1.44 billion in the same period in 2018.

Gross revenues stood at P21.18 billion, a 16-percent improvement from P18.26 billion year-on-year.

Robinsons Land’s net income attributable to shareholders of the parent firm jumped by 19 percent to P1.83 billion in the quarter from P1.55 billion a year ago.

Consolidated revenues also grew by 7 percent to P6.78 billion in the first three months from the year-earlier’s P6.36 billion.

Food-and-beverage subsidiary Universal Robina Corp. recorded P3.13 billion, a 3.5-percent improvement from P3.02 billion year-on-year, on the back of higher operating income.

Net income attributable to shareholders of the parent rose by 2.9 percent to P3.04 billion from P2.95 billion.

Robinsons Bank registered a 57.5-percent decrease in its net income at P42.53 million in the period, compared with P100.08 million year-on-year.

JG Summit blamed the decline on a 47.8-percent increase in cost and expenses, including interest expense, which offset the 40-percent revenue increase of P1.89 billion versus P1.35 billion year-on-year.

Only JG Summit Petrochemicals Group swung to a net loss of P730.40 million, compared to the P826.30-million net profit it posted in the first quarter of 2018.

The petrochemicals group consists of JG Summit Petrochemicals Corp. and JG Summit Olefins Corp., which saw their combined revenues fall by 8.3 percent to P9.57 billion from P10.43 billion year-on-year.

The group said the decline was due to lower average selling prices, coupled with higher cost and expenses.

JG Summit shares finished down by P2 or 3.25 percent to P59.50 apiece on Tuesday.

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