JG Summit swings to profit with P815M on units’ rebound

JG Summit Holdings, Inc. generated P814.51 million in net income attributable to parent in the second quarter, a reversal of the P2.62-billion loss incurred in the same period last year, its regulatory filing on Thursday shows.

This comes as most of its subsidiaries’ revenues went past pre-pandemic levels. The company’s topline grew by 23% to P60.51 billion from P49.17 billion.

“Despite the lingering impact of the pandemic, we have successfully kept our food and banking revenues stable while we continue to exhibit strong recovery on businesses that had been more severely affected by the first enhanced community quarantine,” JG Summit President and Chief Executive Officer Lance Y. Gokongwei said in a statement, referring to its real estate and petrochemicals businesses.

For the first six months, JG Summit’s net attributable income stood at P936.69 million, recovering from a P720.25-million loss incurred in the same period in 2020.

The company’s consolidated revenues saw a nine-percent growth to P128.1 billion in the first half from P117.81 billion.

“The topline growth was mainly driven by higher plant utilization rates in JGSPG (JG Summit Petrochemicals Group), Chengdu’s contribution and recognition of lot sales in RLC (Robinsons Land Corp.), recovering passenger flights & higher cargo yields in CEB (Cebu Air, Inc.), as well as higher earnings from our core investments in Meralco (Manila Electric Co.) and PLDT (Inc.),” the company said.

Universal Robina Corp.’s earnings grew by 46% to P8.05 billion in the first half, as revenues inched up by 1.7% to P68.53 billion.

“The continuous recovery in its international markets and the growth in commodities unit outpaced the expected lower performance in Branded Consumer Foods Philippines given the high base from pantry stocking last year,” the company said.

Meanwhile, real estate arm Robinsons Land saw its first semester net income surge by 48% to P5.4 billion, while revenues went up by 55% to P25.6 billion as the company recognized contributions from its Chengdu Ban Bian Jie project in China and its lot sales in Bridgetowne Destination Estate.

Cebu Air, meanwhile, widened its net loss to P13.8 billion from last year’s P9.1 billion. Its revenues declined by 66% to P5.9 billion as pandemic restrictions led to a low number of flights.

JGSPG’s net income stood at P2.2 billion, from a P2.7-billion loss last year. Meanwhile, topline for the unit grew 2.5 times to P18.1 billion as selling prices and sales volumes improved.

Banking arm Robinsons Bank Corp.’s profits climbed 22% year on year to P340 million in the second quarter, to finish the first half with P573 million. Its year-to-date topline stood at P4.6 billion.

The company’s earnings from associated companies and joint ventured rose by 24% in the first half to P4 billion.

“The increase is mainly due to the 48% increase in equity in net earnings of Meralco to P2.8 billion given the stable energy consumption in residential, the demand recovery in its commercial and industrial segments, as well as the absence of last year’s impairment charge on its Pacific Light Power investment,” JG Summit said.

On Thursday, shares of JG Summit at the stock exchange declined by 1.53% or 90 centavos to close at P58.10 each. — Keren Concepcion G. Valmonte

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