Conglomerate JG Summit Holdings Inc. of industrialist John Gokongwei registered a net income of P29.3 billion in 2017, up 169 percent from P10.9 billion in 2016 when it booked impairment losses of P16.7 billion from a decline in the market value of the group’s investment in PLDT Inc.
JG Summit’s core net income, minus non-recurring items, stood flat at P29.5 billion in 2017, as the weak performance of food manufacturing, airline and real estate businesses was offset by strong bottom line of the petrochemical and banking units.
Consolidated revenues based on the financial report filed with the Philippine Stock Exchange rose 13.7 percent to P273.4 billion from P240.5 billion in 2016.
Unit Universal Robina Corp. booked a 13-percent decrease in net income to P10.89 billion from P12.87 billion in 2016 as cost and expenses grew faster than the revenues.
JG Summit’s real estate arm Robinsons Land Corp. posted a net income of P5.88 billion, up 2.3 percent in 2017, after revenues slightly dipped to P22.45 billion from P22.7 billion in the previous year.
Cebu Air Inc.’s net income declined 19 percent in 2017 to P7.9 billion from P9.75 billion in 2016. Revenues, however, rose 9.9 percent to P68 billion from P61.9 billion in 2016, as passenger volume climbed 3.2 percent while the average fares increased 3.8 percent.
The petrochemicals business under JG Petrochemicals Group delivered net income of P5.9 billion in 2017, an improvement of 17 percent from P5.13 billion a year ago. Revenues amounted P41.4 billion, up 42 percent from P29.07 billion in 2016, on higher sales volume and an increase in the average selling price of polymers and olefins.
The conglomerate’s banking unit posted a 31-percent increase in sales to P4.48 billion from P3.41 billion on higher interest income recognized from finance receivables and trading gains.
Revenues from core investments also declined as dividend income received by the group dropped 28.5 percent to P1.45 billion from P2.03 billion due to lower dividend income declared by PLDT.
Equity in net earnings of associates, primarily from investments in UIC/Singapore Land and Manila Electric Co., climbed 21 percent to P9.9 billion, including the P719.18 billion full-year equity earnings take-up from Global Business Power Corp. in 2017.
Consolidated cost of sales and services in 2017 increased 19.1 percent P171.5 billion, driven by the rise in fuel prices affecting the airline business, and higher input costs of the food and petrochemicals businesses.