JG Summit H1 profit more than doubles to P4.05B

An article published in The Philippine Star, August 16, 2006
By Zinnia B. Dela Peņa

Boosted by gains from the sale of shares in its food unit, Gokongwei listed flagship investment holding company JG Summit Holdings Inc. posted a net income of P4.05 billion in the first half of the year, up 138 percent from P1.7 billion in the same period last year.

In the second quarter, however, JG Summit's net profit fell to P168.14 million from P953.16 million, weighed down by foreign exchange losses arising out of the company's dollar-denominated liabilities and that of its subsidiaries.

JG Summit sold some of its shares in snacks and beverage manufacturer Universal Robina Corp. in February 2006, raising some P3.21 billion.

The conglomerate registered a 23.5 percent growth in consolidated revenues to P40.31 billion from P32.64 billion, mainly driven by the robust performance of its food, real estate development and petrochemicals businesses.

The group's food business contributed P18.04 billion to total revenues, rising 17.37 percent from the previous levels P15.37 billion. Real estate and hotels, on the other hand, contributed P3.34 billion or an increase of 32.5 percent from the year ago's P2.52 billion.

Petrochemicals, meanwhile, accounted for P2.91 billion of total revenues, representing a 69.19 percent jump from the year earlier figure of P1.72 billion.

Interest income grew 25.4 percent to P2.54 billion from P2.03 billion while other income registered a 327.9 percent jump from P800 million to P3.42 billion, largely due to the recognition of gain on sale from URC shares.

Operating expenses amounted to P9.5 billion, 14.7 percent higher than last year's P8.28 billion. The increase was attributed to costs of operating the mobile phone business and air transportation and the expansion of the food business into regional operations.

Financing costs and other charges amounted to P3.85 billion, up 11 percent from P3.47 billion. The increase in level of the company's financial debt contributed to higher finance cost.

EBITDA increased to P12.66 billion from P9.32 billion. Excluding non-recurring items, EBITDA would have increased to only P9.45 billion.

JG Summit's telecommunications unit Digitel widened its net loss to P1.45 billion from only P1.014 billion, primarily brought about by the effect of foreign exchange fluctuations.

Revenues fell 3.9 percent to P4.3 billion from P4.47 billion, mainly due to the decline in international traffic volume attributed to the possible adverse impact as foreign carrier's preference for alternative least cost routes are heightened.

The wireless communications service registered revenues of P1.47 billion, a slight increase from the previous year's P1.45 billion due to higher revenues from its unlimited call and text variants. Costs and expenses, on the other hand, went up 4.8 percent to P5.75 billion.
 

    HOME     |     PROPERTIES LIST      |     INQUIRE NOW