JG SUMMIT Holdings, Inc. doubled its earnings in the second quarter as its airline, real estate and banking units registered double-digit growth. In a
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JG SUMMIT Holdings, Inc. doubled its earnings in the second quarter as its airline, real estate and banking units registered double-digit growth.
In a regulatory filing, the Gokongwei-led holding firm said its attributable profit soared 99% to P9.96 billion in the three months ending June from P5 billion during the same period in 2018.
Consolidated revenues jumped 11% to P82.18 billion in the second quarter, coming mostly from its food business.
The food business, through Universal Robina Corp. (URC), generated P33.72 billion in revenues, up 3% — driven by the sustained growth of its branded consumer foods and agro-industrial segments.
The airline segment, represented by budget carrier Cebu Air, Inc., contributed P23.53 billion in revenues. The 20% increase was attributed to larger passenger volume and an increase in average fares.
The company’s real estate and hotel business, through Robinsons Land Corp. (RLC) added P7.98 billion in revenues, 19% higher than a year ago as it opened new malls.
Revenues from the banking segment, under Robinsons Bank Corp., surged 45% to P2 billion during the quarter due to higher interest income from finance receivables, commission income and trading gains.
The petrochemicals group, however, recorded a 16% decline to P9.01 billion in the three-month period. This represents the earnings of JG Summit Petrochemicals Corp. and JG Summit Olefins Corp., which were impacted by lower selling prices and volumes sold during the period.
For the first half, JG Summit posted an attributable net income of P17.4 billion, 77% up year on year.
“Increase is mainly due to the double-digit income growth in our airline and real estate businesses coupled by the foreign exchange translation gains and increase in equity in net earnings of associates particularly from United Industrial Corporation Limited (UIC),” the company said.
Consolidated revenues stood at P158.44 billion, a 10% increase from a year ago.
URC posted a 6% revenue growth to P67.04 billion, while Cebu Air’s revenues increased 18% to P44.7 billion.
Revenues of RLC added P14.74 billion in the six-month period, up 13% from last year, while Robinsons Bank chipped in P3.89 billion to rise 43%.
Petrochemicals revenues slipped 12% to P18.58 billion in the first half of the year.
JG Summit is allocating P87.5 billion for capital expenditures this year, a bulk of which will be dedicated to the expansion of its petrochemical business. — Denise A. Valdez