JG Summit net income falls 86%

JG SUMMIT Holdings, Inc.’s consolidated net income last year plummeted by 86.3% to P700 million after the impact of the peso’s devaluation on the Gokongwei-led conglomerate’s dollar-denominated debt.

“We experienced a surge in consumption which drove the strong demand for our products and services across our food, real estate, and airline businesses,” said Lance Y. Gokongwei, JG Summit president and chief executive officer, in a press release on Wednesday.

“The demand was sustained throughout the year, this against the backdrop of significant inflation with the volatility driven by the weaker peso and higher prices of oil and soft commodities,” he added.

The profit fall comes despite a 36% rise in consolidated revenues to P312.4 billion, which the company already surpassed the pre-pandemic level, “thus hitting a new record high.”

Food business Universal Robina Corp. reported a 12% increase in net income to P14 billion after strong sales, pricing moves, and cost-saving initiatives. Its topline grew by 28% to P149 billion.

“This was fueled by the strong sales momentum that the company saw despite inflation,” the company said.

It added that the domestic branded consumer foods business “continuously reached new record highs quarter after quarter and grew revenues by 23% throughout the year.”

Robinsons Land Corp. posted a 21% growth in net income to P9.8 billion as total revenues rose by 22% to P43.4 billion due to higher residential sales and mall and hotel recovery.

Cebu Air, Inc. posted a net loss of P14 billion due to elevated fuel prices.

“It has returned back to profitability in December, after about 30 months of being in the red,” the company said.

Cebu Air’s system-wide revenues increased 261% to P56.8 billion due to the growth in its passenger and ancillary businesses and the stable increase in its cargo business.

“Over 108,000 flights and 14.8 million passengers were flown throughout the year, increasing 214% and 335% year on year, respectively. Seat load factor also improved 15 ppts year on year to 75% in 2022,” the company said.

JG Summit Olefin Corp., its petrochemicals business, reported a net loss of P14.9 billion, which incorporated higher interest expenses and foreign exchange losses.

Revenues also declined by 11% to P35.9 billion in 2022 after a three-month facility shutdown in mid-2022.

“Acting on the subdued global demand with China’s borders being closed on one hand, and the cost push from the record-high input prices and shipping charges on the other, both resulting in negative petrochemical spreads,” it said.

Robinsons Bank Corp. posted higher net income by 13% to P1.4 billion this was due to better net interest margins and lower provisions. Its revenues increased by 15% to P10.6 billion.

Robinsons Bank and Bank of the Philippine Islands are in the process of securing regulatory approvals for their merger, which the company expects to close this year.

For the company’s core investments, its share in Manila Electric Co.’s earnings grew to P7.8 billion. Singapore Land Group’s equity earnings contribution rose by 10% to P3 billion while PLDT Inc. dividends brought P2.8 billion, up by 43% year on year.

Shares in JG Summit on Wednesday went up by 3.35% or P1.70 to close at P52.50 apiece. — Adrian H. Halili