JG Summit profit up 417% at P3.88B

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Posted: 3:33 AM | May 17, 2006

Inquirer

JG Summit Holdings Inc., the flagship company of diversified tycoon John Gokongwei, reported a January-March consolidated net income of P3.88 billion, up 417 percent from P750.4 million in the same quarter last year, boosted by the sale of shares in branded foods unit Universal Robina Corp. Universal Robina in February completed a primary and secondary offering of common shares to international and local investors. Its major shareholders -- JG Summit, Express Holdings Inc. and Robinsons Supermarket Corp. -- got P7 billion from the sale.

JG Summit said that without the one-time gain, consolidated net income would have been P674.8 million, up 17.7 percent year-on-year from P573.2 million. Consolidated revenues rose 45.9 percent to P23.54 billion from P16.13 billion, with contributions mainly from core businesses such as foods and real estate development, and from petrochemicals.

Interest income from investment portfolios rose 74.8 percent to P1.59 billion. Gross profit was P5.5 billion, up 13 percent. Rising costs of services in the air transport (Cebu Pacific Air) and mobile phone (Digitel Mobile) businesses limited the growth of gross margins. Operating expenses swelled 24.5 percent to P4.97 billion from P3.99 billion.

Costs related to operating the mobile phone business and air transportation, and expansion of the foods business in Asia, contributed to the rise in costs.

Financing costs and other charges were up 37.3 percent at P2.25 billion. With INQ7.net