Forex losses pull down JG Summit profit


Foreign exchange losses dragged the first-half income of the Gokongwei-led conglomerate JG Summit Holding Inc., or by 31 percent.

In a disclosure to the Philippine Stock Exchange on Wednesday, JG Summit reported that its unaudited consolidated net income attributable to equity holders of the parent company for the second quarter of 2013 amounted to P310.8 million, bringing its net income for the six months ending June 30, 2013, to P5.2 billion from the P7.5 billion recorded in the same period in 2012.

The 30.8-percent decrease, according to the group, was mainly due to the 5.2-percent depreciation of peso during the period with the company recording a P2.9-billion foreign exchange loss compared to a foreign exchange gain of P1.3 billion for the same period last year.

Moreover, the listed group saw a mark-to-market loss during the first half of fiscal year 2013 that amounted to P155.4 million, a reversal from last year’s mark-to-market gain of P992 million, as the group’s financial assets were affected by the volatility of the international financial markets during the period.

Core earnings of the company, however, went up 31.7 percent to P13 billion, while its consolidated revenues grew 8.9 percent from P69.2 billion to P75.4 billion from the strong performance of its subsidiaries.

The group’s petrochemical business, JG Summit Petrochemicals Corp., registered P812.5 million in revenues in the first six months of fiscal year 2013, for a 73.8-percent decrease from last year’s P3.1 billion as a result of the unavailability of goods to sell.

This, according to the group, was from the technical shutdown of the production since the start of the fiscal year in October 2012.

Robinsons Bank Corp., the group’s banking arm, on the other hand, posted a net income of P379.52 million for the first six months ending June 30, 2013, a 55.4-percent increase from the P244.2 million recorded in the same period last year.

The growth in the bank’s net income was mainly from higher revenues recorded during the period, combined with the revenues contributed by recently acquired Legazpi Savings Bank.


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