JG Summit 9-mth net gains rise 7.4% to P23.2-B


JG Summit Holdings Inc. booked a consolidated net income of P23.2 billion in the first nine months of 2015, up 7.4 percent from P21.6 billion a year earlier.

The conglomerate of the Gokongwei group cited the absence of a one-time gain recorded last year.

“The lower increase was due to last year’s one-time gain on the sale of Jobstreet, amounting to P1.45 billion and to the significantly higher losses on foreign exchange and market valuations this year as compared to same period last year,” the company said.

Without the Jobstreet item, the company’s core net income or income based solely on operations increased by 39.2 percent to P20.69 billion from P14.86 billion in the same comparable period.

“The increase in core earnings is due to the double-digit income growth in our core operating businesses, particularly Cebu Air, which benefited significantly from the substantial reduction in fuel prices and our Petrochemical business which resumed commercial operations last November 2014,” the company noted.

Consolidated revenues grew by 27.4 percent to P169.78 billion from P133.24 billion due to the strong performance of its five main subsidiaries—snack food and beverages, airline, real estate and hotels, petrochemicals, and banking.

The bulk of revenues came from snack food and beverage maker Universal Robina Corp. (URC). URC’s net income attributable to equity holders went up 8.7 percent to P9.46 billion from P8.7 billion. Total revenues improved by 17 percent to P82.04 billion from P69.67 billion on improved domestic and international sales of branded consumer foods.

Cebu Air Inc., the operator of budget carrier Cebu Pacific, noted a 71 percent jump in net income to P3.56 billion from P2.08 billion on the back of higher passenger volume and number of flights. As of end-September, the Cebu Air registered a fleet of 55 aircraft from 51 year-on-year.

Property vehicle Robinsons Land Corp. (RLC) posted a 23.8 percent increase in net income attributable to equity holders at P4.18 billion due to higher real estate sales.

Revenues of JG Summit Petrochemicals Group, consisting of JG Summit Petrochemicals Corp. and JG Summit Olefins Corp., totaled P19.44 billion from P1.02 billion as the group resumed commercial operations of an expanded and rehabilitated polymer plant and naphtha cracker facilities.

Robinsons Bank Corp. cited a revenue increase of 9.9 percent to P2.19 billion from P1.99 billion.

This year, JG Summit expects core net income to grow by 13 percent to 15 percent on the back of robust results snack food and airline business and from the petrochemicals group.


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