'Perfect storm' over? JG Summit income up 79% in H1 2019
MANILA, Philippines – The net income of conglomerate JG Summit Holdings more than doubled in the 1st half of 2019, ending the period at P17.6 billion.
This marks a recovery from the earnings in 2018 at P9.8 billion, a 32% drop from 2017 due to poor performance of its petrochemicals, food, and airline units. (READ: Inflation, weak peso batter JG Summit's earnings in 2018)
While the company bounced back from what Lance Gokongwei described as a "perfect storm," earnings were still a little short of analysts' estimates.
This year's performance was driven by a 10% consolidated revenue growth, as well as margin improvements across strategic business units.
The Gokongwei-led conglomerate also said its numbers were boosted by a P3-billion gain from its acquisition of additional stakes in Marina Centre Holdings and the Marina Mandarin hotel.
Overall, its core income after tax surged by 11% to P13.6 billion.
"With inflation easing and a generally favorable macroeconomic environment this year, we continue to experience strong growth from our food, airline, and real estate businesses. Our exposure to a diverse mix of core businesses and investments has certainly helped us achieve such earnings momentum," JG Summit said in a statement.
The net income of its food unit, Universal Robina Corporation, rose by 6% to P5.2 billion from January to June 2019. (READ: URC ties up with European snack maker to boost Oceania operations)
Revenues for the period stood at P67 billion, 6% higher year-on-year as Filipinos ate more of its snacks and noodles, and drank more coffee.
Robinsons Land Corporation's net income expanded by 20% to P4 billion, due to a significant increase in interest income.
Revenues during the period grew by 13% to P14.7 billion, driven by strong performances of its malls, offices, and hotels.
Cebu Pacific's net income more than doubled to P7.3 billion during the 1st half of the year. Revenues also accelerated by 18% to P44.7 billion.
Growth was driven by an 8% increase in passenger traffic coupled with a 12% increase in fares.
Its cargo business grew slower at 2% as volumes were tempered by lower cargo yield.
JG Petrochemicals continued its decline during the 1st half. Its topline dropped by 12% to P18.6 billion year-on-year.
"EBITDA (earnings before interest, tax, depreciation, and amortization) dropped 98% to P54.8 million as average selling prices fell faster than the naphtha cost used in production," the company said.
Robinsons Bank ended the 1st half with net income of P191 million.
Its revenues grew by 42% to P3.9 billion, driven mostly by loans which performed better during the period at 16%.