JG Summit swings to P8.55-billion profit in 2009

MANILA, Philippines - Conglomerate JG Summit Holdings Inc. ended last year in positive territory after chalking in a net income of P8.55 billion, reversing a P690-million loss incurred in 2008.

In its disclosure to securities regulators, JG Summit attributed the significant turnaround in its financial performance to mark-to-market gains amid robust financial markets.

Market gains amounted to P2.33 billion as compared with losses of P7.14 billion last year. Likewise, foreign exchange losses have been kept to only P21.63 million as against a huge P2.93 billion in 2008, due to the strengthening of the peso by the end of the year.

However, even without the impact of these two items, JG Summit still showed remarkable improvement as its core earnings rose 16.5 percent to P10.68 billion.

Consolidated revenues reached P107.96 billion, up nine percent from the previous year’s P99.07 billion, on the continued steady growth of most of its subsidiaries.

While consolidated operating expenses increased 20.4 percent as a result of a higher level of business activity of its food, telecommunications and airline units, consolidated operating income grew 34.6 percent due to better operating efficiencies that led to improved margins in 2009.

Cebu Pacific Air registered a record P3.26 billion net income, a reversal of the P3.26 billion net loss incurred from its fuel hedges the prior year. Consolidated gross revenues went up 18.4 percent to P23.31 billion, mainly driven by the continuous expansion of the airline’s route and flight network, additional passenger and cargo traffic. This accounted for about 22 percent of the Group’s revenues in 2009 making the airline the second biggest revenue contributor.

Telecommunications unit Digital Telecommunications Philippines Inc. likewise swung to profitability with net earnings reaching P259.72 million compared with a net loss of P1.98 billion in 2008. Its mobile phone business, Sun Cellular, is now in the black, registering a net income of P1.24 billion last year from a net loss of P929.40 million a year earlier.

Food unit Universal Robina Corp. meanwhile, reported a 920.2 percent increase in net income brought about by higher revenues and the recovery of the market valuation of its financial assets.

Property arm Robinsons Land Corp. continued its steady growth with net earnings rising 3.6 percent to P3.26 billion from P3.15 billion. The commercial centers division accounted for P4.21 billion of real estate revenues or 14 percent higher than the previous level due to new mall openings.

JG Summit Petrochemicals, meanwhile, trimmed its net loss to P89.56 million from P295.27 million.

Robinsons Savings Bank reported a net income of P202.81 million, up 41.2 percent from P143.59 million, mainly due to higher interest income from P893.81 million to P1.02 billion last year.