Weak peso, surging costs eat into JG Summit’s profit
JG Summit Holdings Inc. saw a 16.5 percent decline in its consolidated net income for the first half to P14.64 billion, weighed down by treasury losses, a weak Philippine peso, and rising expenses.
The drop in income was also attributed to lower earnings of the airline business under Cebu Pacific which was affected by the eise in fuel prices.
Consolidated revenues increased 12.6 percent to P134.47 billion.
Consolidated cost of sales and services jumped 19.3 percent to P=82.9 billion because of the rise in fuel prices which affected its airline business under Cebu Pacific, and higher input costs for our food and petrochemicals businesses.
Operating expenses increased by 14 percent to P24.49 due to higher selling, general and administrative expenses, particularly from the food business.
Financing costs and other charges, net of interest income, rose 14.4 percent to P3.09 billion due to the higher level of financial debt of the food, real estate and airline businesses.
Jg Summit incurred a mark-to-market loss of P1.08 bilion compared to a gain of P1.3 billion a year ago.
It also recognized a net foreign exchange loss of P434.87 million compared to an almost P1 billion a year earlier.