JG Summit profit balloons 79% in six months

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Metro Manila (CNN Philippines, August 14) — JG Summit Holdings, Inc. reported a 79 percent increase in its earnings during the first six months of 2019, citing double-digit growth in consolidated revenues from all its businesses.

The Gokongwei-led holding company saw its net income jump to ₱17.6 billion in the first half from the ₱9.8 billion in the same period last year.

The huge uptick was attributed to the 10 percent growth in consolidated revenues across its food, property, airline, petrochemical, and banking businesses.

JG Summit said its core net income after tax was up 11 percent year-on-year to ₱13.6 billion during the period.

"With inflation easing and a generally favorable macroeconomic environment this year, we continue to experience strong growth from our food, airline and real estate businesses. Our exposure to a diverse mix of core businesses and investments has certainly helped us achieve such earnings momentum," the company said in a statement.

By businesses, Universal Robina Corporation posted a 9 percent increase in its income to ₱5.4 billion during the six-month period, as revenues grew by 6 percent to ₱67 billion.

READ: Gokongwei-led URC posts 9% increase in H1 net income

Revenues from Robinsons Land Corpration increased by 13 percent to ₱14.7 billion in six months, pushing the real-estate unit's net income by 20 percent to ₱4 billion.

Cebu Air's net income doubled to ₱7.3 billion from January to June, with an 18 percent increase in its revenues to ₱44.7 billion.

For the banking segment, Robinsons Bank Corporation ended the first half with a net income of ₱191 million, as its revenues rose 42 percent year-on-year to ₱3.9 billion.

Only JG Petrochemicals Group experienced shortfall caused by limited production due to operational issues. Revenues from the petrochemical business declined by 16 percent to ₱9 billion year-on-year, dragging net income to ₱18.6 billion or 12 percent lower than a year ago.

JG Summit's equity in net earnings of associated companies and joint ventures jumped 63 percent to ₱8.5 billion year-on-year, boosted by a ₱3 billion gain from Singapore-based United Industrial Corporation's (UIC) acquisition of additional stakes in Marina Centre Holdings and Marina Mandarin Hotel. The holding firm has investments in UIC, along with other businesses such as Manila Electric Company and Global Business Power.