JG Summit net income down on 'perfect storm' of fuel, peso

ABS-CBN News

Posted at Apr 16 2019 11:40 AM | Updated as of Apr 16 2019 11:42 AM

JG Summit president and CEO Lance Gokongwei. File Photo. Mark Demayo, ABS-CBN News

MANILA – JG Summit Holdings Inc on Tuesday said its core net income for 2018 fell 24 percent to P22.4 billion, citing the "perfect storm" of high fuel costs and a weak peso.

The holding form of taipan John Gokongwei said Cebu Pacific, JG Summit Petrochemicals and Universal Robina were exposed to oil and foreign exchange shocks.

Cebu Pacific also incurred higher financing costs for its fleet expansion, it said. Cebu Pacific's 2018 net income reached P3.9 billion. 

Revenues rose 7 percent to P291.9 billion driven by Robinsons Land Corp’s “solid performance,” Cebu Pacific’s robust cargo and passenger revenues and Robinson’s Bank’s growth momentum, JG Summit said. 

"We may say that the group braved a perfect storm in 2018… We are more optimistic in 2019, but we would remain vigilant of various risks and continue strengthening our diverse strategic business units to ensure balance sources of profitability," JG Summit president Lance Gokongwei said.

The country’s largest airline is expecting the arrival of 12 new aircraft this year, Gokongwei earlier said.