JG Summit posts record profit of P21.59 billion

MANILA, Philippines - JG Summit Holdings Inc., the investment vehicle of the Gokongwei family, said its net earnings grew 32 percent last year to a record P21.59 billion, boosted by gains from the sale of its telecom unit.

Based on financial report submitted to the Philippine Stock Exchange, JG Summit said it booked P13 billion from the divestment of its stake in Digital Telecommunications Philippines Inc. (Digitel) to Philippine Long Distance Telephone Co. (PLDT) The landmark deal, valued at P69.2 billion, created a telecommunications giant with a market share of about 70 percent.

JG Summit said consolidated revenues amounted to P122.9 billion, up 17 percent on strong growth across all business units.

However, equity income from associates and joint ventures, declined 20 percent to P2.22 billion due to the lower income take-up from Singapore-based affiliate United Industrial Corp. Ltd. (UIC). JG Summit holds a 36.09-percent stake in UIC.

Profits from continued operations slid 45 percent to P8.56 mainly due to input costs, forex movements and capital markets volatility.

Core earnings before taxes, excluding the extraordinary gains from the sale of Digitel, the effects of foreign exchange and market valuation losses, fell nine percent to P16.27 billion.

Consolidated EBITDA likewise decreased 11 percent to P25.2 billion owing to high commodity prices which eroded margins for food and agri unit Universal Robina Corp. and airline subsidiary Cebu Air.

Cebu Air, which operates the Cebu Pacific brand, meanwhile, reported a 47-percent drop in net income last year to P3.62 billion, weighed down by higher aviation fuel prices. The budget airline the second biggest income contributor of the JG Summit Group, chalked in revenues of P33.94 billion, 17 percent higher than the previous level as the number of passengers carried increased 14 percent.

Net loss of JG Summit Petrochemicals Corp. likewise widened to P384 million from only P102 million due to inventory write-offs and higher prices of bunker fuel. Revenues grew 44.6 percent to P4.8 billion on the back of 43 percent jump in sales volume and higher selling prices of its polypropylene and polyethylene resins.

Meanwhile, Robinsons Savings Bank posted net earnings of P368 million, an increase of 23.3 percent from the 2010 figure. The growth was attributed to higher interest income and trading gains.

As of end-2011, the bank had total resources P31.5 billion, higher than the year-ago level of P24.8 billion.