Connect with us

Hi, what are you looking for?

News

JG Summit swings to loss in Q3

JG Summit Holdings, Inc. slumped back into the red in the third quarter, as its businesses were affected by the reimposed strict lockdowns and higher costs.

In a regulatory filing, the Gokongwei-led conglomerate reported a P3.38-billion net loss attributable to equity holders of the parent company in the July to September period, a reversal of the P844.1 million income a year ago.

However, revenues grew by 9% to P50.41 billion in the third quarter.

“Amid the reimplementation of stricter lockdown given the Delta variant, the company’s pace of recovery decelerated from a 24% year-on-year registered growth in 2Q21, which came from a low base given the onset of the pandemic last year,” the company said in a separate statement.

JG Summit said “record-breaking cost inflation” affected Cebu Air, Inc., JG Summit Petrochemicals Group (JGSPG), and Universal Robina Corp. (URC), which led to narrower margins in the third quarter.

“Our margins will be affected by inflationary pressures driven by higher oil and input prices as well as the devaluation of the peso. Our plan is to manage these headwinds through better pricing and cost management measures,” Lance Y. Gokongwei, president and chief executive officer of JG Summit, said in the statement.

In the first nine months, JG Summit reported a net loss of P2.44 billion, a reversal of the P123.85-million attributable income a year ago.

Year-to-date, JG Summit’s consolidated revenues grew by 9% to P167.9 billion.

“The topline growth was mainly driven by expanded capacity and improved utilization rates of its petrochemical plants, the contribution from its Chengdu real estate project, higher earnings from its core investments in Meralco and PLDT, and the resilient topline of its food, banking, and office segments,” the company said.

It noted all subsidiaries recorded growth except for Cebu Air, which operates budget carrier Cebu Pacific. Commercial passenger flights remained limited for most of the nine-month period.

URC ended the nine-month period with a 40% increase in net income to P10.5 billion due to the sale of “idle land” and the impact of the government’s corporate tax incentives. Meanwhile, its revenues inched up by 1% to P85.8 billion, driven by sales from its international segment and the commodities group.

Robinsons Land Corp.’s (RLC) income surged 44% to P6.3 billion, thanks to a 39% rise in revenues to P30.1 billion.

Meanwhile, Cebu Air incurred a net loss of P22 billion due to soaring fuel prices, increased expenses on maintenance, higher interest and accretion expense worth P1.8 billion. It also incurred a P1.8-billion foreign exchange loss.

JGSPG, meanwhile, narrowed its net loss to P423 million in the first nine months from last year’s P1.9 billion as revenues surged 88% to P27.2 billion.

Robinsons Bank Corp. saw a 20% increase in net income to P942 million, while revenues “remained stable” at P6.9 billion.

Meanwhile, for its core investments, JG Summit said its equity earnings in Manila Electric Co. amounted to P4.7 billion, P1 billion from equity net earnings in Singapore Land Group. PLDT, Inc. also increased its dividends to P82 per share, letting JG Summit receive a total of P2 billion in dividends.

“Although [the third quarter] presented challenges to some of our subsidiaries, we have seen green shoots in the market and recovery in consumer demand for products and services as vaccination rollouts accelerate and mobility restrictions ease starting November,” Mr. Gokongwei said.

“We anticipate these developments to positively impact our airline, hotels, malls, and food segments,” he added.

Mr. Gokongwei added that JG Summit “remains optimistic” on the developments and trusts that the company’s diversified portfolio will lead its recovery in 2022 and its pre-pandemic levels by 2023.

Shares of JG Summit on Friday rose 1.61% or 95 centavos to close at P60 apiece. — Keren Concepcion G. Valmonte

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

PAGCOR Chairman and CEO Andrea Domingo (right) and La Paz Mayor Venustiano Jordan unveil the marker of the newly built Multi-Purpose Evacuation Center. Being...

News

As President Rodrigo R. Duterte’s term ends today, we show how select economic, financial, and development indicators have changed throughout the years from his...

News

THE peso sank to the P55-a-dollar level on Wednesday — its weakest in more than 16 years — amid fears of a recession in...

News

(MAY 13, 2020) Houses are dwarfed by towering buildings of the Makati City skyline on a quiet Wednesday midnight as they government through the...

News

THE Philippine Ports Authority (PPA) has awarded more port projects, including the construction of a cruise ship port in Coron, Palawan province southwest of...

News

MORE Filipinos opened their own bank accounts at the end of last year, as many of them were forced to pay for services online...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Financial Advisors

The healthcare ecosystem is one that has thrived on the cusp of scientific progress, benefitting enormously from the winds of change in the technological...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.