JG Summit net income rises to P22.61B in 2015
MANILA, Philippines – JG Summit Holdings, the holding firm of the Gokongwei family, saw its consolidated core net income rise by 23.9% in 2015, driven by higher income from petrochemicals, real estate, food, and air travel.
JG Summit Holdings recorded a consolidated core net income, excluding non-recurrent items, of P28.05 billion ($608.8 million), said the firm in a disclosure to the stock exchange on Tuesday, April 12.
Including non-recurrent items, the holding firm's consolidated income from equity holders was at P22.61 billion ($491 million), an increase of 23.9% from the P18.25 billion ($396 million) recorded in 2014.
The firm attributed the difference to foreign exchange losses incurred due to the peso depreciating against the US dollar by more than P2.00 by the end of 2015, and Cebu Pacific Air's fuel hedging losses.
Consolidated revenue increased by 24.1% to P229.27 billion ($4.973 billlion) from the P184.81 billion ($4.008 billion) recorded in 2014. Earnings before interest, taxes, depreciation, and amortization (EBITDA) was P63.79 billion ($1.383 billion), an increase of 29.6% compared to 2014.
Core business performance
JG Summit's major business units had higher revenues in 2015.
JG Summit Petrochemicals Group raked in P26.78 billion ($580.8 million) in revenue compared to P3.23 billion ($70.07 million) the previous year as the firm started integrated operations in November 2014.
The total revenue of Robinsons Land Corporation (RLC) increased by 16.4% to P20.3 billion ($440.2 million) with 9 new malls, 3 new office buildings, and 3 new hotels contributing to revenue streams.
Universal Robina Corporation (URC) also saw its revenue rise by 15.9% to P112 billion ($2.430 billion), attributed to a 16.9% growth in branded consumer food, both domestic and international.
Despite losses in fuel hedging, Cebu Pacific Air benefited from low oil prices and saw its total revenue rise by 8.7%, reaching P56.50 billion ($1.226 billion) compared to P54 billion ($1.171 billion) in 2014.
The airline's passenger volume also increased 8.5% and ancillary revenue per passenger rose 9.8%, offsetting a 2.5% decrease in average fare prices. Ancillary revenue comes from non-ticket sources, such as baggage fees.
Robinsons Banking Corporation (RBC) revenue also rose by 9.3% to P2.97 billion ($64.4 million), driven by an increase in interest income from loans.
Revenues from core investments fell, however, with dividend income received dropping by 43.9% to P2.85 billion ($61.85 million) from P5.07 billion ($110 million) in 2014.
This was due mainly to lower dividend income declared from PLDT – from P185 per share in 2014 to P152 per share in 2015 – and the sale of Jobstreet which previously contributed P1.7 billion ($36.88 million). – Rappler.com
$1 = P46.09