Bounce Back: Gokongwei Group's JG Summit Returns to Profitability in Q3
ILLUSTRATOR Roland Mae Tanglao
Gokongwei-led JG Summit Holdings returned to profitability in the third quarter on the back of its strong food, banking, and office business segments. The conglomerate said Friday it was well-positioned to face further challenges from the COVID-19 pandemic.
JG Summit posted consolidated net income of P844 million in the third quarter, a turnaround from net losses of P720 million the first six months of the year, it said in a statement. Core net income after taxes in the nine months to September was at P1.2 billion.
Consolidated revenues in the first nine months of the year was at P167.3 billion, down 27 percent from the same period in 2019. The stronger business segments tempered declines in its airline, hotel, mall and petrochemical ventures, JG Summit said.
“The business continues to face challenges brought about by COVID but I am encouraged by our results in the third quarter," said JG Summit President and CEO Lance Gokongwei.
"Weaker consumer sentiment will continue to affect demand for products and services in the near term thus we remain cautiously optimistic. We will however focus on execution to build on and continue the momentum that have started in Q3," he said.
Universal Robina Corporation reported a net income of P7.5 billion, up 7 percent, while Robinsons Land Corporation's income was pulled down to P4.4 billion, which 31 percent lower.
Cebu Pacific was the hardest hit, with losses amounting to P14.7 billion. JG Petrochemicals was also down, with P1.9 billion in net losses.
Meanwhile, Robinsons Bank Corporation saw 68 percent growth, with a net income of P786 million.
(Summit Media, which publishes Esquire Philippines and Reportr.World, is a member of the Gokongwei Group)
This story originally appeared on Reportr.World. Minor edits have been made by Esquiremag.ph editors.