JG Summit posts ₧2.7-B loss in H1

JG Summit Holdings Inc., the holding firm of the Gokongwei Group, said it recorded a P2.7-billion loss in the first half, from P936.69 million in attributable income last year.

The company attributed this to the adverse impact of the significant peso depreciation on the company’s foreign currency-denominated debt.

The company said it saw “substantial improvements” in both topline and core profits in the second quarter.

Consolidated revenues for the first half reached P151.1 billion, higher than last year’s P128.14 billion and 95 percent of its pre-pandemic level. For the second quarter alone, its revenues reached P84.4 billion, higher by 39 percent from last year’s P60.5 billion.

“Our overall business has benefitted from the reopening of economy as evidenced by the sequential improvement on our operating results on a quarterly basis. We are cognizant that significant challenges remain in the near term with the extraordinary cost pressures, rising interest rates and peso devaluation,” said JG Summit President and CEO Lance Y. Gokongwei.

Gokongwei said the company’s business units have implemented measures on how to mitigate the margin erosion through selective pricing actions and productivity initiatives.

“Given the strong demand for products and services despite the high inflationary environment in the first half, we remain optimistic that further easing of restrictions especially on international travel as well as the resumption of face-to-face classes in the second half will sustain the topline growth momentum.”

Core net income after tax for the second quarter rose 48 percent P2.1 billion from the P689-million loss in the first quarter. It said growth was evident across all its businesses, especially with the recovery in its airline, mall and hotel operations, as well as contributions from its core investments.