JG Summit Holdings Inc., the listed holding company of the Gokongwei Group, posted a 35.8-precent decline in first quarter net income to P4.8 billion on weaker earnings from the petrochemicals and food businesses, coupled with foreign exchange losses due to weaker peso.
Core net income, which excludes non-operating and non-recurring items, amounted to P6.35 billion, down 22.9 percent from P8.23 billion in the same period a year ago.
The group’s consolidated margins in the first three months of 2018 were also diluted by rising input costs given the inflationary pressures and weaker peso.
First-quarter consolidated revenues, however, rose 4.7 percent to P70.6 billion from P67.51 billion on year, according to JG Summit’s financial report filed with the Philippine Stock Exchange.
“Going through the business cycle is indeed tough but we are confident that JG Summit can withstand the volatilities in foreign exchange rates and commodity prices, and ultimately overcome these challenges as we continue to maintain a well-diversified portfolio with a balanced income stream and healthy source of recurring cash flows,” JG Summit president and chief executive Officer Lance Gokongwei said.
Net income of the group’s food manufacturing unit, Universal Robina Corp., declined 12.4 percent to P2.95 billion, while revenues inched up 1.6 percent to P31.19 billion.
Airline business Cebu Air booked a 12-percent increase in first-quarter net income to P1.28 billion as total revenues rose 8.3 percent to P18.2 due to a 10 percent increase in the average fares
Net income of property unit Robinsons Land Corp. increased 12 percent to P1.5 billion on the back of a 17-percent hike in revenues to P6.4 billion.
The group petrochemical business registered a 65.5-percent decline in first-quarter net income to P826.3 million, after revenues fell 3.2 percent to P10.4 billion on lower sales volume.