Property business boosts JG Summit earnings by 43%
A strong showing from the commercial property segment boosted the first-half earnings of diversified conglomerate JG Summit Holdings Inc. by 43 percent to P14.8 billion.
The Gokongwei-led holding firm’s core net income, which includes a one-time gain from the merger of Robinsons Bank with Ayala-led Bank of the Philippine Islands, doubled to P18.1 billion.
Its revenues likewise climbed by 15 percent to P187.8 billion. “We continue to post overall top line growth despite the lingering effects of inflation, which dampened consumer sentiment,” JG Summit president and CEO Lance Gokongwei said in a statement on Monday.
“As we move to the second half, we hope to sustain this momentum with the expected decline in inflation that in turn could ignite the sequential rebound in consumer demand,” Gokongwei added.
Robinsons Land Corp. (RLC) propelled the group’s earnings as it booked a 9-percent rise in profits to P6.5 billion, buoyed by rental income of its mall, office, hotel and logistic segments.
Growth in these businesses offset the decline in revenues in the residential segment as demand from the middle-income sector weakened. RLC’s revenues likewise revved up by 8 percent to P20 billion.
Last week, RLC announced plans to develop a new district within Taguig City in partnership with the Bases Conversion and Development Authority.
Cebu Air Inc., the listed operator of budget carrier Cebu Pacific, flew a record 6 million passengers in the second quarter alone, up by 10 percent.
Earnings, however, declined by 5 percent to P3.5 billion due to foreign exchange losses and the absence of a one-time gain recognized last year.
Meanwhile, the net income of snack food maker Universal Robina Corp. (URC) was nearly flat at P6.7 billion, representing a 5-percent increase.
This was due to higher tax provisions, which tempered gains in operating profits.
URC earlier announced plans to officially exit the China market by next year to shift its focus on other “higher-growth” markets. It currently operates its cereal business in China.
Petrochemicals unit JG Summit Olefins Corp. widened its net loss to P7.4 billion from P6 billion mainly due to higher financing costs.
