JG Summit 9-mth profit soars 44.4% to P23.45B


LISTED JG Summit Holdings Inc. said its consolidated net income for the first nine months of the year rose 44.4 percent from a year ago, mainly driven by the growth of its airline business.

In a financial report to the Philippine Stock Exchange on Tuesday, JG Summit said consolidated net income in the nine-month period jumped to P23.45 billion from P16.11 billion last year.

“The increase is mainly due to the double-digit income growth in our airline business, which benefited from the drop in fuel prices and fuel hedging gains, and the performance of our petrochemicals business, which expanded significantly since the start of its integrated operations in November 2014, coupled by the lower costs of naphtha feedstock sold during the period,” the company said.

Consolidated revenues grew 4.6 percent to P177.52 billion on the strong performance of its core subsidiaries in the first nine months.

Cebu Air accounted for the bulk of revenues. The airline unit achieved 10.5 percent growth in revenues to P46.69 billion, driven by a 6 percent increase in passenger volume and 8.4 percent increase in average ancillary revenue per passenger.

Its petrochemicals unit JG Petrochemicals Group saw revenues rise 8.2 percent to P21.03 billion from P19.44 billion in the previous year on higher sales volume.

Property development arm Robinsons Land Corporation registered a 15.2 percent growth in revenues during the period to P16.81 billion from P14.60 billion a year ago, on higher real estate sales and rental income brought about by its four newest malls and three new office buildings.

Banking unit Robinsons Bank reported revenue growth of 14.9 percent to P2.51 billion from P2.19 billion last year, driven by an increase in interest income recognized from finance receivables.

In contrast, Universal Robina Corporation saw a slight decline in total revenues during the nine-month period to P81.73 billion from P82.04 billion a year ago, as sales of its international operations dipped.

“Revenues from our core investments declined this period compared to same period last year as dividend income received by the Group dropped 29.4 percent from P2.82 billion last year to P1.99 billion this year mainly due to lower dividends declared by PLDT for the period,” JG Summit said.

The company’s operating expenses increased by 10.8 percent to P31.93 billion from 28.83 billion last year due to higher selling, general and administrative expenses, particularly in the airline and food business units.

“As of September 30, 2016, JG Summit’s balance sheet remains healthy, with consolidated assets of P647.89 billion from P596.33 billion as of December 31, 2015,” the company said.


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