Cebu Pacific takes toll on JG Summit earnings
JG Summit Holdings Inc. reported an eight percent decline in its nine-month profit to P21.2 billion, dragged down by lower earnings from its airline unit and a weakening peso.
Consolidated revenues grew 14 percent to P202.64 billion. Revenues from core investments, however, declined as dividend income fell 27.8 percent to P1.44 billion due to the lower dividends declared by PLDT.
Equity in net earnings of associates, primarily from its investments in UIC/Singapore Land and Meralco, expanded 19.2 percent to P7.57 billion. This includes the equity in net earnings of Global Business Power Corp. f P517.75 million.
Total cost of sales and services increased 20.4 percent to P126.93 billion because of the rise in fuel prices which affected the company’s airline business, and higher input costs for the food and petrochemicals units.
JG Summit booked a P624.2 million loss from financial assets and derivative instruments, a turnaround from the P1.43 billion gained in the same period last year.
It also recognized a net foreign exchange loss of P949.3 million due to the depreciation of Philippine Peso as well as that of the local currencies of its international subsidiaries against the US dollar.
Food manufacturing arm Universal Robina Corp. saw a 21.2 percent drop in net income due to lower operating income and foreign exchange gains and higher net finance costs.
Cebu Pacific’s net earnings slid 38.3 percent to P4.38 billion because of higher operating expenses due to the rise in fuel prices and the depreciation of the peso against the US dollar. The budget carrier also incurred a hedging loss of P674.8 million.
Property unit Robinsons Land Corp. saw a slight increase in earnings to P4.57 billion as revenues declined three percent to P15.27 billion.
JG Summit Petrochemicals grew its earnings by 24.3 percent to P4.97 billion on the back of a 45.2 percent jump in revenues.
Robinsons Bank Corp. likewise reported a 9.4 percent rise in profit to P238.65 million as revenues increased 28.8 percent driven by higher interest income, commission income and trading gains.