JG Summit nets P1.7 B in H1, up 24%

Manila Bulletin

August 12, 2005

 

JG Summit nets P1.7 B in H1, up 24%

 

By ANA MARIE MACUJA

 

JG Summit Holdings, Inc. yesterday reported a 24.2 percent rise in net income for the first half of the year at P1.70 billion versus year ago’s P1.37 billion.

 

The Gokongwei-controlled firm disclosed its revenues during the first six months of the year stood at P32.36 billion, a significant improvement from P29.85 billion during the same period last year.

Revenue growth was driven primarily by JG Summit’s core businesses which includes foods, under Universal Robina Corp. (URC) and property development which is under Robinsons Land Corp. (RLC).

JG Summit also noted other business units namely Digital Telecommunications Philippines, Inc. and its textile firm Litton Mills, Inc. also contribute to the increase in its revenues. Revenues however would have been higher if not for the continued slide in the sales of the Group’s petrochemical business.

JG Summit Petrochemicals Corp. registered a 50.5 percent decline in revenues during the six month period from last year’s R3.47 billion to R1.72 billion this year. This was brought about by a 69 percent drop in sales despite efforts to increase average selling price by 61 percent. Consequently, JG Summit Petrochemicals widened its net loss to RP31.2 million from P54.3 million last year.

JG Summit however noted that while its petrochemical business continues to be on the red, its core businesses, food and property sectors, continue to provide the company with improved net profits.

On food, URC posted consolidated net sales and services of P15.3 billion for the six months ended March 31, 2004, an increase of 14 percent over the same period of last year. Net income for the first semester of fiscal year 2004 reached P1.1 billion, 8.7 percent better compared to the same period of last year.

JG Summit reported revenue growth for URC was lead by the strong performance of its Branded Consumer Foods (BCF) business, particularly its expanding international operations in Southeast Asia and improved revenues of its flour business.

For property, RLC, recorded revenues of R2.58 billion for the first half of its fiscal year ending March 2005, up from revenues of R2.12 billion during the same period last year.

RLC’s net income for the first half of fiscal year 2005 stood at R626.9 million, up by 13 percent from last year’s R554.7 million. The largest revenue contributor remains to be the Commercial Centers Division, contributing 59 percent of the company’s gross revenues.

Cebu Air, Inc. (Cebu Pacific), the Group’s airline business meantime reported a net income of 30.7 million for the six-month period ended-June 2005, significantly lower than its net income of R395.4 million last year. Cebu Pacific’s net income for the first half of the year was pulled down by higher cost of services and operating expenses.

Digitel, the Group’s telecommunications arm meanwhile widened its net loss for the first half of the year despite a 21.3 percent rise in revenues. Digitel’s revenues stood at R4.24 billion at the end June this year, higher than its revenues of R3.49 billion same period last year. Its net loss however widened to R1.09 billion from R69 million last year.

 

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