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Friday, March 29, 2024

JG Summit, LT Group, FDC register big profits

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Conglomerates JG Summit Holdings Inc., LT Group Inc. and Filinvest Development Corp. registered double-digit profit growths in the first nine months of the year amid tame inflation and the low interest rate environment.

LT Group, the listed holding company of beer and tobacco tycoon Lucio Tan, said net income in the nine-month period stood at P14.72 billion, up 17 percent from P12.57 billion year-on-year. 

LT Group’s tobacco business accounted for P9.57 billion or 65 percent of the total  income, followed by banking unit Philippine National Bank, which contributed P3.64 billion or 25 percent.

Eton Properties Philippines Inc. delivered P626 million while liquor unit Tanduay Distillers Inc. accounted for P509 million. Asia Brewery Inc. contributed P254 million while the group’s 30.9-percent stake in Victorias Milling Company Inc. accounted for P148 million.

JG Summit of the Gokongwei Group reported a consolidated net income of P22.5 billion in the nine months ending September, up 52 percent on year. Nine-month consolidated revenues rose 11 percent to P239.6 billion.

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Core net income, which excludes the impact of forex and mark-to-market adjustments, climbed 11 percent year-on-year to P19.7 billion.

JG Summit said group revenues in the third quarter jumped 12 percent to P81.2 billion, fueled by higher sales from the property and airline businesses.

“We are happy to report another solid quarter and the business continues to post strong top line and profit growth for the year,” said JG Summit president and chief executive Lance Gokongwei.

“Growth was mainly driven by our core businesses in food, real-estate and airlines while challenges still remain in some of our business units like petrochemicals. Overall, the diversity of our portfolio including our minority investments has resulted in the group’s increase in earnings,” he said.

FDC, the listed holding company of the Gotianun family, posted a 16-percent increase in net income to P9 billion in the first nine months of 2019 from P7.7 billion on year.

The strong performance was on the back of a revenue growth of 15 percent, with its core businesses in property and banking, along with power and sugar, registering notable increases.

FDC said the property business, composed of the real estate and hospitality segments, remained a solid source of growth for the group, contributing more than half of FDC’s bottom line. 

The group’s banking and financial services subsidiary, East West Banking Corp., contributed P4.4 billion in profit, up 44 percent on year.

Power unit FDC Utilities Inc. contributed P2 billion in net income, up nine percent on year.

“We are pleased with the year-to-date performance of the group, with each of the reported business lines contributing positively to the bottom line,” said FDC president and CEO Josephine G. Yap. 

“We are poised to finish 2019 as strongly with sustained robust business activity in our chosen segments that are focused on the underserved middle market,” said FDC president and chief executive Josephine Gotianun-Yap.    

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