JG Summit's net income inches up in first semester
MANILA, Philippines — JG Summit Holdings, Incorporated, the holding firm of the Gokongwei family, grew its net profit by only 4.4% in the first half of the year on the back of one-time gain on sale of Jobstreet Malaysia.
The conglomerate told the Philippine Stock Exchange on Friday, August 14 its consolidated net income from equity holders climbed to P13.43 billion ($290.85 million) in the first half of the year, only a 4.4% increase from the same period last year.
The smaller increase in accounting net income was mainly due to last year’s sale of Jobstreet at P1.45 billion ($31.40 million), the Gokongwei-led firm said.
Excluding non-recurring items, its core net income surged by 33% to P14.09 billion ($305.14 million) in the first 6 months of 2015.
The increase in core earnings is due to the double-digit income growth in its core operating businesses particularly Cebu Air, Incorporated, which benefited significantly from the substantial reduction in fuel prices and its petrochemical business that resumed commercial operations in November 2014, JG Summit said.
Consolidated revenues rose 26.7% to P113.84 billion ($2.46 billion) from P89.88 billion ($1.95 billion) with almost all subsidiaries, including Universal Robina Corporation (URC), Cebu Air, Robinsons Land Corporation (RLC) and JG Summit Petrochemicals Group, showing growth.
URC’s net income went up 10.9% to P6.31 billion ($136.65 million) in the first 6 months of the year on the strength of its branded business, while RLC’s bottom line rose 17.3% to P2.96 billion ($64.10 million) on higher revenues.