Gokongwei-led JG Summit nets P13.5-B in 2012, up 60%
MANILA, Philippines - The listed holding firm of the Gokongwei group reported a 59.6% increase in net income attributable to equity holders in 2012 on the back of hefty dividends from its stake in telco giant Philippine Long Distance Telephone Co. (PLDT), and favorable market conditions.
In a disclosure to the stock exchange on Thursday, March 14, JG Summit Holdings Inc. said it netted P13.53 billion in 2012 from P8.48 billion in 2011.
Core earnings -- which strips off extraordinary gains from the sale of its telco unit Digitel to rival PLDT in 2011, the effects of foreign exchange currency translations, and mark-to-market valuations of its financial investments -- grew 20% to P19.54 billion in 2012 from P16.29 billion.
Its earnings reflected the P2.95 billion dividends received from its 8% stake in PLDT, as well as the continued appreciation of peso against the US dollar and the recovery in the market value of its bond and equity investments.
Without the P13.04 billion gains from the sale of Digitel in 2011, JG Summit would have reflected a 37.1% decrease in total net income attributable to equity holders.
Below are the highlights of JG Summit's 2012 financial performance:
- Consolidated revenues grew 9.5% P135.25 billion from P123.50 billion
- Dividend income increased to P3.2 billion from P244.96 million a year ago due to the P2.95 billion dividends from PLDT.
- Equity income from associates and joint ventures declined 9.4% to P2.01 billion from P2.22 billion due to the lower income of Singapore-based affiliate, United Industrial Corp. Ltd. (UIC)
- Financing costs decreased by 22.4% to P1.59 billion as borrowings were reduced after the full payment of $300 Million term loan in 2011, URC’s $200 million guaranteed note in the 1st quarter of 2012 and Robinsons Land's P3 billion loan in May 2012.
- Mark-to-market gains reached P1.79 billion, a reversal of the P655.49 million losses a year ago. This was largely due to gains of the bond investments and additional investments.
- Foreign exchange gain reached P1.40 billion, a reversal from the P245.88 million losses a year ago. The sharp appreciation of the Philippine peso in 2012 contributed to this Consolidated assets reached P340.38 billion from P313.63 billion a year ago
- Total equity (including minority interest) stood at P198.97 billion from P180.40 billion
These were how each business units performed:
Universal Robina Corporation (URC, food)
- It is the biggest revenue contributor of the group accounting for 52.6% of total
- Sales reached P71.20 billion for the fiscal year ended September 30, 2012, a 6% growth
- Sales from domestic operations grew 16.2% to P34.35 billion due to the strong 56% growth of its beverage division, thanks to its new coffee mix products.
- Sales from international sales increased by 4.9% to P20.16 billion, aided by a 39.1% increase in sales volume. All units in the portfolio performed well except in Thailand as the effects of the 2011 flood continued to affect the sales of its main categories, biscuits and wafers, which are not consumer staples and are discretionary. Vietnam, the biggest contributor, has contributed 42.8% of total international sales in dollar terms. Sugar sales declined by 39.9% due to lower selling prices and volume, and this is because of lower production yields caused by the excessive rains during the growing season.
- Net income attributable to equity holders of the parent increased by 66.9% to P7.74 billion
- Cebu Pacific (airline)
- Second biggest contributor to group's revenues with 28% share
- Gross revenues reached P37.90 billion, up 11.7% higher largely due to the 11.1% increase in passenger volume driven
- Number of flights were increased by 12.5% due to increase in aircraft to 41 from 37. Seat load factor was higher at 82.7%
- Baggage fee and ancillary revenues went up by 30.9% to P3.27 billion from =P2.50 billion.
- Cost of services and operating expenses went up 15.2% to P35.24 billion. Aviation fuel expenses, a major cost contributor, increased 15.4% P17.56 billion
- Foreign exchange gain increased to P1.20 billion from P50.15 million as a result of peso appreciation
Robinsons Land Corp (RLC, real estate)
- This accounted for 10.0% of the Group’s total revenues.
- Gross revenues reached P13.52 billion, a 6% increase
- Commercial centers accounted for the biggest share in revenues at 48% with the opening of 3 new malls – Magnolia, Pangasinan and Puerto Princesa, followed by residential business at 32% share, office division at 10% and hotels division at 10%.
JG Summit Petrochemicals Corporation’s (JGSPC)
- Gross revenues shrunk 11.7% to P5.11 billion for the fiscal year ended September 30, 2012 due to lower production this year to 81,832MT from 87,176MT in 2011
- Net foreign exchange gains reached P58.53 million versus P2.22 million losses a year ago
- Net loss for fiscal year ended 2012 increased 36.4% to P523.73 million from P383.97 million a year ago
Robinsons Bank Corp. (RBC, banking and financial services)
- Net income of P389.90 million reflected a slight 1.4% growth from P3384.38 million a year ago
- Revenues reached P2.53 billion from P2.36 billion a year ago
- Total resources as of December 31, 2012 reached P41.41 billion from P31.52 billion
- Loans increased to P18.20 billion from P13.18 billion
- Deposit liabilities increased to P33.96 billion from P25.19 billion