JG Summit profit soars 54% to P7.4 B

MANILA, Philippines — JG Summit Holdings Inc. (JGS), the holding company of the Gokongwei Group, reported a consolidated net income of P7.4 billion in the first quarter of the year, up 54 percent.

JG Summit attributed the recovery to growth in the food, air transport and property businesses, which all saw their core earnings grow at a consistent pace of 28 percent year-on-year.

However, this was largely offset by Petrochem’s margin contraction, leaving the group’s consolidated core net income flattish at P6.2 billion.

Consolidated revenue increased nine percent year-on-year to P76.3 billion on the back of the recovery in URC’s Philippines business, acceleration in Cebu Pacific’s topline performance, sustained growth momentum of both Robinsons Land Corp. and Robinsons Bank and higher equity earnings from affiliate companies.

“Coming from a very challenging 2018, we are delighted to start the year stronger with the good execution of the strategic initiatives we have set in place. We are also benefitting from a more favorable macroeconomic environment with better consumer sentiment driving the growth of our core businesses in food, real estate and airline,” JG Summit president and chief executive officer Lance Gokongwei said.

JG Summit’s businesses include food through Universal Robina Corp., budget airline through Cebu Pacific, property development through Robinsons Land Corp., banking through Robinsons Bank and petrochemicals through JG Summit Petrochemical.

Universal Robina posted a net income P3.1 billion, up three percent in the first quarter, while Robinsons Land reported a 19 percent growth in earnings to P1.8 billion.

Cebu Pacific’s net income surged 138 percent to P3.4 billion as a result of operational efficiencies with single-digit growth in expenses related to flying operations, as well as aircraft and traffic servicing costs.

On the other hand, JG Petrochem reported a net loss of P700 million due to higher selling prices and oversupply in the market.

Robinsons Bank’s net income likewise fell 58 percent to P42.5 million during the quarter.

Net equity earnings from associated companies and joint ventures rose 11 percent to P2.7 billion.

“This was primarily driven by the seven percent and 37 percent increase in equity earnings of Meralco and United Industrial Corp. (UIC), respectively. JGS also received dividends from PLDT which was higher by 29 percent year- on-year.

Conversely, Global Business Power’s equity earnings declined by 70 percent which partially tempered the growth of total earnings from affiliates,” JG Summit said.