JG Summit income surges to B

JG Summit Holdings, Inc., the flagship of the Gokongwei group, reported a 169 percent surge in consolidated attributable net income to R29.37 billion last year from the R10.92 billion earned in 2016.

In a disclosure to the Philippine Stock Exchange, the firm said the jump in profit is due to the impairment losses recorded in 2016 totaling R16.71 billion primarily from the decline in market value of the Group’s investment in PLDT.

The Group’s consolidated core net income after taxes (excluding non-operating and nonrecurring items) amounted to R29.56 billion in 2017, relatively flat from R29.97 billion in 2016.

This is primarily because of the lower net income of its airline business which was affected by the rise in fuel prices, offset by the double-digit income growth in the petrochemicals business and increase in equity earnings from associates.

These associates are led by United Industrial Corporation Limited (UIC), Manila Electric Company (Meralco) and Global Business Power Corporation (GBPC).

Consolidated revenues grew 13.7 percent from R240.50 billion in 2016 to R273.45 billion in 2017 due to the strong performance of its core subsidiaries.

Universal Robina Corporation’s total revenues increased by 11.0 percent to R125.01 billion driven by the 30.1 percent increase in branded consumer food group’s international sales and 33.6 percent sales growth of the sugar business.

JG Petrochemicals Group revenues increased by 42.4 percent to R41.41 billion in 2017 due to higher sales volume and average selling price of polymers and olefins.

Cebu Pacific’s total revenues went up by 9.9 percent to R68.03 billion in 2017 mainly due to a 3.2 percent growth in passenger volume and 3.8 percent increase in average fares.