Cebu Pacific earnings weigh on JG Summit


GOKONGWEI-LED conglomerate JG Summit Holdings, Inc. posted net income of P22.69 billion in the first nine months of the year, flat from last year’s P22.63 billion, as profits were tempered by the weaker earnings of its airline unit Cebu Pacific.

Net profit attributable to equity holders of the parent amounted to P21.24 billion, lower by 7.9 percent from the P23.07 billion recorded in the same period last year.

“[This was] primarily due to the lower net income of our airline business which was affected by the rise in fuel prices, as well as some mark-to-market hedging losses for the nine months of the year as compared [with]the hedging gains for the same period last year,” the company said over the weekend.

“This was coupled by translation effects of the depreciation of the Philippine peso and international subsidiaries’ local currencies against the US dollar,” it added.

Consolidated earnings before interest, tax, depreciation and amortization, was marginally lower at P52.60 billion versus the P52.85 billion posted a year ago.

Net income of food unit Universal Robina Corp. fell 21.2 percent to P8.4 billion as earnings were pressured by higher net finance costs, alongside lower operating income and foreign exchange gains.

Property arm Robinsons Land Corp. posted a P4.57-billion consolidated net income attributable to equity holders, flat from last year’s P4.5 billion.

Airline business Cebu Air, Inc. saw nine-month net income drop 38 percent to P4.37 billion from P7.1 billion last year as a result of foreign exchange losses.

Cebu Pacific’s major exposure to foreign exchange rate fluctuations is in respect to US dollar denominated long-term debt incurred in connection with aircraft acquisitions, JG Summit said.

Petrochemicals business JG Summit Petrochemicals Corp. and JG Summit Olefins Corp. reached a combined net income of P4.97 billion, up 24.3 percent from last year, on higher revenues driven by the increase in the volume of olefins, lower interest expense, and net forex gains which offset a 32.6 percent increase in cost and expenses.

Robinsons Bank Corp., JG Summit’s banking arm, registered net earnings of P238.65 million, an increase of 9.4 percent from the P218.23 million posted last year, on higher interest income, commission income, and trading gains for the period.

Robinsons Retail Holdings, Inc., the group’s retail unit, posted lower net income of P1.357 billion, down 4 percent from the P1.36 billion recorded a year ago.


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