JG Summit Q1 core net income down 8%

Gokongwei-led diversified conglomerated JG Summit Holdings Inc. reported an 8% decline in its core net income for the first quarter of the year, dragged by interest expenses from debt absorbed from its discontinued petrochemical unit and softer sugar prices in its commodities unit.

The company’s core net income after taxes eased to P6.9 billion, while its reported net income grew 19% to P5.2 billion to reflect the reduction in losses from the discontinued petrochemical operations. Consolidated operating profits climbed 9% to P17.1 billion.

Consolidated revenues increased 7% to P93.3 billion, on the back of higher passenger numbers in its air transport subsidiary Cebu Air Inc. and higher recognized residential revenues in its real estate arm Robinsons Land Corp. (RLC).

“(W)e are now navigating a period of heightened geopolitical and macroeconomic uncertainty. Rising fuel costs and peso depreciation are creating dual pressures — compressing margins while simultaneously weighing on consumer purchasing power,” JG Summit president and chief executive officer Lance Gokongwei said in a regulatory filing.

Aside from RLC and Cebu Air Inc., which operates budget carrier Cebu Pacific, JG Summit’s portfolio also includes Universal Robina Corp. It also has interests in PLDT Inc. and in Manila Electric Company (Meralco).

“We are not immune to the headwinds facing our portfolio and the broader economy,” Gokongwei said.

“What we can control, we are managing closely — implementing austerity measures to drive cost discipline, adjusting prices in a measured manner, maintaining balance sheet strength, and keeping operational focus sharp,” he added. —VAL, GMA News