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Published
By James A. Loyola
JG Summit Holdings, Inc., the flagship of the Gokongwei group, reported that its net income increased 63 percent to $ 31.3 billion in 2019 due to stronger core revenue and one-time earnings.
(Photo courtesy of www.jgsummit.com.ph/)
In a disclosure to the Philippine Stock Exchange, the company said the earnings include the impact of the gains in the market and currencies totaling ₱ 1.5 billion, plus its share of the profit of United Industrial Corporation Limited in the acquisition and JG Summit Petrochemical Group (JGSPG) impairment loss reversal.
Excluding one-time earnings, principal net after-tax income amounted to ₱ 25.3 billion, 13 percent more than the previous year due to margin improvements at its airlines, banks and food subsidiaries.
The overall top line increased by 3 percent to ₱ 301.8 billion in 2019 driven by strong passenger volumes and better performance and higher additional revenue in its airline business.
Revenue was also driven by wider net interest margins (NIMs) and business gains at its banking unit; as well as its ₱ 3.0 billion share in UIC’s profit arising from the acquisition of additional shares in Marina Center Holdings and Marina Mandarin Hotel.
These were tempered by slower growth in the International Brand Consumer Food (BCF) and Agro-industrial and Commodity (AIC) divisions, as well as lower sales volume and average sales prices in its petrochemical business.
“Coming from a very challenging 2018, we saw a strong recovery as JGS recorded a significant earnings expansion in 2019 driven by our core businesses in food, air transport and banking.” JG Summit President and CEO Lance Gokongwei said.
He added that “our plan is to maintain this growth in the coming years, since we have clearly established our strategic priorities taking advantage of the strength of our group ecosystem and, at the same time, focus on strengthening our organizational and people capacities: accelerating the digitization, transformation, incorporating a customer-centric culture and embracing global best practices in business sustainability. “
Universal Robina Corporation (URC) posted a 7 percent improvement in net income to ₱ 10.1 billion, driven by growth in operating income offset by financial cost, other expenses and adverse currency effects.
Net sales totaled ₱ 134.2 billion, a growth of 5 percent compared to the same period last year. Operating income (including pig market valuation) grew 12 percent to ₱ 15.0 billion, with margins improved by 72 basis points compared to last year.
Sales of national and international brand consumer foods contributed to ₱ 105.9 billion. Internal revenue increased by 8 percent, while operating revenue grew again to 12 percent compared to last year.
International revenue increased by 2 percent on a constant monetary basis, but decreased by 2 percent in peso terms to ₱ 42.2 billion due to the negative impact of currency conversion.
International operating income, on the other hand, still grew 8 percent compared to last year, as margins expanded 89 bp given the continued recovery in Vietnam.
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