JG Summit H1 profit jumps 25% on forex gains


Posted at Aug 14 2012 06:38 PM | Updated as of Aug 15 2012 02:38 AM

MANILA, Philippines - JG Summit Holdings reported a net income of P7.47 billion in the first half of the year, a 25% increase from a year ago, boosted by higher foreign exchange gains.

The Gokongwei-led company's profit growth was helped by the peso's appreciation against the US dollar in the second quarter, which led to higher foreign exchange gains.

In a disclosure to the stock exchange, JG Summit said consolidated revenues rose 10% to P67.09 billion in the January to June period, from P61 billion a year ago, as its businesses performed strongly.

However, consolidated operating expenses also went up 14.2% to P10.91 billion in the first half, from P9.55 billion during the same period last year, due to higher general and administrative expenses in the airline operations and food business.

JG Summit recorded a foreign exchange net gain of P1.3 billion in the first half, a turnaround from last year's net foreign exchange loss of P41.72 million, as the peso appreciated against the US dollar.

JG's food business Universal Robina Corporation's (URC) net income surged by P1.14 billion to P4.22 billion in the first half, on the back of higher domestic and international sales.

Domestic sales increased by P2 billion, as its beverage business grew by 41.5% helped by new products such as Great Taste White Coffee and repackaged Refresh product. There was also strong sales growth in China, Vietnam and Malaysia.

Property development arm Robinsons Land Corporation's net income went up by 10% to P2.24 billion for the six months ended March 31.

Cebu Air Inc. (Cebu Pacific) posted 17.9% higher revenues of P19.73 billion for the first half, as passenger volume increased 17% to 6.9 million. However, the increase in passenger revenues were partially offset by the reduction in average fares by 3.7%.

JG Summit Petrochemicals Corporation (JGSPC) had a lower net loss of P55.6 million in the first half from P72.06 million net loss a year ago. Revenues stood at P3.09 billion, a 10.8% increase from the previous year, while a net foreign exchange gain of P66.03 million was recognized in the first half.

Robinsons Bank Corp. reported a net income of P244.15 million during the first 6 months of the year, 67.7% higher from last year due to higher revenues.