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Conglomerate JG Summit Holdings, led by Gokongwei, returned to profitability in the third quarter thanks to improved profits from its petrochemical and real estate units along with lower losses from its airline business.
JG Summit posted a net profit in the third quarter of P844 million, a change from the net loss of P2.62 billion in the second quarter. But compared to its profit in the same period last year, when the COVID-19 pandemic had yet to hit the economy, the net profit fell 82.5 percent.
For the nine-month period, JG Summit posted a net profit of P124 million, 99 percent less than the net profit of P22.2 billion seen during the pre-COVID-19 period last year.
Excluding the impact of foreign exchange gains and market valuation losses, as well as the non-recurring impairment loss recognized by its electricity subsidiary, JG Summit’s principal net income amounted to P1.2 billion for the January-September period. .
“The business continues to face challenges from COVID, but our third-quarter results encourage me. With the easing of restrictions, economic activity has slowly returned and our different business units showed a certain recovery quarter by quarter, but I also observe that these results are far from ideal and still show strong falls compared to a year ago ”, president of JG Summit. and CEO Lance Gokongwei in a disclosure to the Philippine Stock Exchange on Friday.
JG Summit said lower consumer confidence would continue to affect demand for products and services in the short term, making the group “cautiously optimistic.”
“However, we will focus on execution to build on and continue the momentum that began in the third quarter. The prospects for a vaccine also give us hope that this will unlock further acceleration and recovery towards the latter part of 2021, ”Gokongwei added.
In the third quarter, JG Summit’s financial position was supported by improving petrochemical utilization rates and sales volumes, the gradual resumption of Cebu Air’s domestic and international flights, increased leasable operating space in shopping malls and higher food and banking margins.
For the nine-month period, JG Summit posted consolidated revenue of P167.3 billion, 27 percent less year-on-year.
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