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JG Summit hiked 2019 profit by 63% to P31.3b

Conglomerate JG Summit Holdings Inc. said Wednesday consolidated net income attributed to equity holders of the parent company jumped 63.1 percent in 2019 to P31.3 billion from a year ago, led by the income growth in the airline business and foreign exchange and mark-to-market gains.

It said excluding non-operating and non-recurring items, core net income climbed 12.9 percent to P25.3 billion from P22.4 billion in 2018.

JG Summit said in a disclosure to the stock exchange Wednesday consolidated revenues rose 3 percent to P301.8 billion in 2019, driven by higher revenues from the airline business, wider net interest margins and trading gains in its banking unit.

The group also booked P3 billion representing its share in the gain of United Industrial Corporation Ltd. arising from its acquisition of additional stocks in Marina Centre Holdings and Marina Mandarin Hotel.

These factors tempered the slower revenue growth in international branded consumer foods and agro-industrial and commodities divisions and lower sales volume and average selling prices in its petrochemicals business.

“Our plan is to sustain this growth in the coming years as we have clearly laid out our strategic priorities leveraging on the strength of our group ecosystem while at the same time drive focus in strengthening our organizational and people capabilities—accelerating digital transformation, embedding a customer-centric culture and adopting global best practices in enterprise sustainability,” JG Summit president and chief executive Lance Gokongwei said.

“We also hope to navigate the current difficult environment brought about by the global pandemic and expect to be resilient given the diversity of our portfolio and the strength of our balance sheet. With the help of our employees and our different stakeholders, we are confident that we will only emerge stronger, united, and more prepared to forge ahead,” Gokongwei said.

The group’s food manufacturing arm Universal Robina Corp. reported a net income of P9.8 billion last year, up 6.2 percent year-on-year as revenues increased 5 percent to P134.2 billion.

The growth in revenues was driven by the 7.9-percent growth in branded consumer foods domestic sales, 34.6-percent increase in feeds business and 25.5-percent growth in flour sales.

Cebu Air Inc. also posted a 14.4-percent increase in revenues to P84.8 billion on the back of a 10.8-percent growth in passenger volume and 2.6-percent increase in average fares.

Property arm Robinsons Land Corp. said total revenues went up by 2.5 percent to P30.2 billion because of the growth in rental income and increase in hotel revenues.

JG Petrochemicals Group revenues declined 31.4 percent to P29.1 billion in 2019 as a result of lower average selling prices and volumes.

The banking revenue increased 32.4 percent to P8.1 billion on higher interest income from finance receivables, commission income and trading gains for the year.

Topics: JG Summit Holdings Inc. , net income
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