Weaker peso, surging costs dent JG Summit’s 1st half profit
JG Summit Holdings Inc. of bilyonaryo John Gokongwei said its first semester net earnings plunged by nearly half to P9.8 billion weighed down by foreign exchange losses and soaring expenses.
Consolidated core net income after taxes fell 23 percent to P12.29 billion, largely due to lower earnings of the petrochemicals, food and airline businesses, coupled with the depreciation of the Philippine peso by more than P3 against the US dollar.
The group’s food manufacturing unit Universal Robina Corp. saw its net earnings decline at a faster pace of 35.5 percent to P1.9 billion in the second quarter due to lower coffee volumes and higher selling and distribution expenses.
Earnings of JG Petrochemicals Group likewise fell 50.2 percent to P1.6 billion
“While we continue to face the challenges arising from inflation and the weaker currency further exacerbated by tougher competitive dynamics, we are delighted to see improvements in our second quarter results,” said Lance Gokongwei, president and CEO of JG Summit.
“We believe that we can navigate this environment with the fundamentals of each of our businesses intact and issues are more cyclical than structural. The group’s balance sheet is also strong to withstand these short-term challenges and we plan to continue investing for longer term growth,” Gokongwei added.