The Gokongwei family’s businesses would have returned to pre-pandemic earnings, if not for their airline’s losses.
In a stock exchange filing on Thursday, August 12, JG Summit reported that excluding Cebu Pacific, its core profits in the first half of 2021 grew by 68% to P11 billion. This is already 24% higher than its core profits of P9 billion in 2019.
Its net income – without the budget airline – grew P10.3 billion in the first semester, as the Corporate Recovery and Tax Incentives for Enterprises law lowered corporate income taxes. The bottom line also benefited from the P262 million earned from the sale of its 30% stake in Global Business Power Corporation.
“Despite the lingering impact of the pandemic, we have successfully kept our food and banking revenues stable while we continue to exhibit strong recovery on businesses that had been more severely affected by the first enhanced community quarantine in 2Q last year, namely real estate and petrochemicals,” said JG Summit president and chief executive officer Lance Gokongwei.
“Given the sequential recovery, we are happy to note that most of our subsidiaries’ top lines have already surpassed their average 2019 pre-COVID levels,” he added.
However, when Cebu Pacific is included in the equation, net income stood only at P936 million in the first half of 2021, a turnaround from the P720-million loss during the same period in 2020.
JG Summit’s gross income for the first six months of 2021 stood at P37.4 billion, 1.8% lower than the P38.1 billion during the same period in 2020.
Here is a snapshot of how JG Summit’s businesses performed during the first half of 2021:
Cebu Pacific’s revenues and bottom line in January to June were expectedly weaker, given the timing of the first enhanced community quarantine (ECQ) in 2020.
Revenues declined by 66% to P5.9 billion on the back of fewer flights and cheaper fares.
Net loss amounted to P13.8 billion, larger than 2020’s P9.1 billion.
First half revenues increased by 2% to P68.5 billion, on the back of strong growth in its international business and improvements in its commodities unit.
Net income grew 46% to P8.5 billion.
Robinsons Land posted revenues of P25.6 billion, up 55%, as malls and hotels saw growth despite the pandemic.
Net income increased by 48% to P5.4 billion.
JG Summit Petrochemicals
JG Summit Petrochemicals’ revenues grew 2.5 times to P18.1 billion in the first half due to higher selling prices and sales volumes.
Net income likewise turned positive at P329 million, from a net loss of P2.7 billion in 2020.
Year-to-date, revenues of Robinsons Bank fell 4% to P4.6 billion due to a 33% dip from the first quarter.
Net income stood at P573 million. – Rappler.com