JG Summit nets P6.5 billion in first nine months

Gokongwei-led JG Summit Holdings Inc. (JGS) remains cautious in its margins for the last quarter of the year, even as its core net income for the first nine months grew by more than tenfold.

In a disclosure to the local bourse, JGS reported a core net income of P6.5 billion for the January to September period, up from P0.6 billion in the same period recorded last year.

JGS attributed the growth to improvements in the operating results of its consumer-facing businesses, along with the P3.2-billion sale of its partial 3.2% stake in the Manila Electric Company (Meralco).

Consolidated revenues for the third-quarter increased by 46% to P73.7 billion, bringing the nine-month level up 34% to P224.8 billion.

The company did not provide net income figures for the third quarter.

“Our core businesses in food, airline, real estate, and banking continue to benefit from the sustained strong demand brought about by the increase in economic activity and mobility despite the high inflationary environment while our petrochemicals business continue to suffer from weaker export demand,” President and CEO Lance Gokongwei said.

“We have implemented strategies from gradual pricing actions and cost management initiatives to cushion the impact on our bottom line and margins,” he added.

Universal Robina Corp. (URC) recorded a 26% increase in revenues to P107.9 billion to bring its core net income up 10%, while Robinsons Land Corp. saw a 14% climb in revenues to P34.4 billion to bring its net income up 6% to P6.7 billion.

Cebu Air Inc. narrowed its net loss by 50% to P12 billion, JG Summit Olefins Corporation recorded a net loss of P9 billion, while Robinsons Bank Corp. expanded its net income 37% to P1.3 billion.

“While we anticipate to finish the year stronger with topline continuing into the fourth quarter, our stance on margin recovery remains cautious,” Gokongwei said.

JGS is primarily involved in businesses across the Philippines, and has a presence in the People’s Republic of China, ASEAN, and Oceania through its branded foods segment, and in Singapore through a core investment in a property developer.

Shares in JGS closed Thursday at P43.60 apiece, down by P1.90 or 4.18% from Wednesday’s finish of P45.50. —KBK, GMA Integrated News