JG SUMMIT Holdings, Inc. saw its attributable profit surge 54% in the first quarter of 2019, following the double-digit expansion of its airline and real estate businesses.
In a regulatory filing, the Gokongwei-led conglomerate reported a net income attributable to the parent of P7.44 billion, versus P4.82 billion in the first quarter of 2018.
“Increase is mainly due to the double-digit income growth in our airline and real estate businesses, partially offset by the income decline in petrochemicals business and coupled by the foreign exchange translation gains and market valuation gains on the Group’s financial assets during the period,” the company said.
Consolidated revenues also went up 8.7% to P76.26 billion. The company attributed the higher top line to the performance of its core subsidiaries, namely Universal Robina Corp. (URC), Cebu Air, Inc., and Robinsons Land Corp. (RLC).
URC’s revenues went up 8.7% to P33.32 billion, thanks to the improvement in sales across domestic branded consumer foods, feeds, and commodity foods. The listed food and beverage manufacturer then increased its attributable profit by 2.9% to P3.04 billion.
Meanwhile, the operator of budget carrier Cebu Pacific delivered a 138.4% surge in net income to P3.43 billion, after a 16% growth in gross revenues to P21.18 billion.
Cebu Air tallied a 14.6% increase in passenger revenues to P15.68 billion for the period, after passenger volume went up 8.5% to 5.29 million. The company further benefited from a 5.7% increase in average fares to P2,965 for the period.
For RLC, attributable profit rose 19% to P1.83 billion after revenues also added seven percent to P6.78 billion. The commercial centers division posted revenues of P3.14 billion, as the listed property developer got a lift from newly opened malls including Robinsons Place Ormoc, Robinsons Place Pavia, Robinsons North Tuguegarao, and Robinsons Place Valencia.
The strength of RLC’s commercial centers business offset the lower revenues booked by its residential arm, which saw a seven percent drop in top line contribution to P1.97 billion.
The petrochemicals group, composed of JG Summit Petrochemicals Corp. and JG Summit Olefins Corp., generated gross revenues of P9.57 billion, 8.3% lower year on year due to lower average selling prices for its products.
Higher costs also weighed on the petrochemical group, which swung to a net loss of P730.40 million against a net income of P826.30 million in the same period a year ago.
Robinsons Bank Corp. also posted a 57.5% decline in earnings to P42.53 million, despite a 40% jump in banking revenues to P1.89 billion.
At the same time, JG Summit realized P2.74 billion from equity in net earnings of associated companies and joint ventures, 11% higher year on year. The company has investments in Singapore’s United Industrial Corp., the Manila Electric Company, and Global Business Power Corp.
Shares in JG Summit fell 3.25% or P2 to close at P59.50 each at the stock exchange on Tuesday. — Arra B. Francia