JG Summit Profit Surges 79% to P17.6B
ILLUSTRATOR Roland Mae Tanglao
JG Summit Holdings, Inc.’s (JGS) consolidated net income increased by 79 percent in the first half of 2019, jumping to a record P17.6 billion. This is almost double the P9.8 billion net income of the company in the same period last year.
On top of the company’s P7.5 billion earnings in the first quarter, JGS closed the second quarter with profits reaching P10.1 billion, which is more than double the P5.02 billion net income during the same frame in 2018.
The Gokongwei family-led holding firm attributes the considerable increase of its first half earnings to 10 percent consolidated revenue growth and improved business strategies across the board. The company also credits easing inflation and a “favorable macroeconomic environment” for playing a role in its growth, which boosted its mark-to-market and forex gains from the economy. JGS’s Singapore-based unit United Industrial Corporation also contributed P3 billion to its income, arising from its acquisition of additional stakes in Marina Centre Holdings and Marina Mandarin Hotel.
“Our exposure to a diverse mix of core businesses and investments has certainly helped us achieve such earnings momentum,” said the company in a public disclosure.
JGS’s food, real estate, and airline businesses were significant in boosting income. Universal Robina Corporation ended the first half with a net income of P5.3 billion, while JGS’s real estate arm Robinsons Land Corporation saw a 20 percent increase, amounting to P4.0 billion in net income.
The conglomerate’s airline operator, Cebu Air Inc., experienced the most notable growth as its profits doubled from P3.31 billion in the first semester of 2018 to P7.3 billion in the same period this year.
Meanwhile, Robinsons Bank Corporation posted positive growth in its net income with P191 million, while JG Petrochemicals Group earned P118.5 million in the first half despite operation problems throughout the year.
Esquire Philippines is published by Summit Media, a company owned and managed by the Gokongwei family, who also controls JG Summit Holdings, Inc.