JG Summit boosts profit 169% in 2017

JG Summit Holdings Inc., the conglomerate of the Gokongwei group, grew its consolidated net income 169 percent to P29.37 billion last year.

The P10.92 billion profit in 2016 included impairment losses amounting to P16.71 billion largely due to the decline in market value of the group’s investment in PLDT.

Core net income was relatively flat at P29.56 billion mainly due to the lower earnings of Cebu Air.

JG Summit’s businesses include food and beverage through Universal Robina Corp., petrochemicals under JG Petrochemicals Group, property through Robinsons Land Corp, banking through Robinsons Bank, and airline through Cebu Air.

Consolidated revenues grew 13.7 percent to P273.45 billion owing to the strong performance the different businesses.

URC’s total revenues rose 11 percent to P125.01 billion last year driven by the 30.1 percent increase in the brand consumer food group’s international sales and 33.6 percent sales growth of the sugar business.

JG Petrochemicals registered a 42 percent jump in revenues due to higher sales volume and average selling price of polymers and olefins.

Cebu Air’s total revenues increased by 9.9 percent to P68.03 billion, mainly due to the 3.2 percent growth in passenger volume and the 3.8 percent increase in average fares.

Revenues of RLC slightly decreased to P22.45 billion due to lower real estate sales.

The banking arm’s revenues grew 31.2 percent to P4.48 billion due to increase in interest income recognized from finance receivables and trading gains.

Revenues from core investments declined this year as dividend income received by the group fell 28.5 percent to P1.45 billion, mainly due to lower dividend income declared by PLDT from P106 per share in 2016 to P6 last year.

JG Summit’s equity in net earnings of associates, primarily from its investments in UIC/Singapore Land and Meralco, increased 21.2 percent to P9.91 billion.

The figure also includes the P719.18 billion full-year equity earnings take-up from Global Business Power Corp.

Operating expenses increased 13.6 percent to P50.16 billion due to higher costs incurred by the food and airline businesses.