CONGLOMERATE JG Summit Holdings, Inc. noticed a 39% drop in third-quarter internet earnings to P3.1 billion, however its president stays optimistic about ending the yr on a “good footing.”
“We count on a greater fourth quarter to complete the yr on a very good footing. This may even set up a stronger base as we pursue initiatives to sequentially drive higher prime line progress and margins throughout our working models,” JG Summit President and Chief Government Officer (CEO) Lance Y. Gokongwei stated in a press release to the inventory trade on Wednesday.
JG Summit’s third-quarter consolidated income elevated by 1.4% to P89.1 billion from P87.9 billion final yr.
“This was attributable to bigger losses from JG Summit Olefins Corp. (JGSOC) with the extended trough within the international petrochemical trade cycle, decrease sugar earnings from Common Robina Corp. (URC) as a result of value corrections and high-priced inventories, and diminished common fares from Cebu Air, Inc. (CEB) to stimulate demand through the typical lean interval in Philippine aviation,” the conglomerate stated.
Mr. Gokongwei stated that many of the conglomerate’s companies had been affected by weaker shopper sentiment that has “dampened demand for services.”
“We’re seeing the propensity of customers in the direction of worth meals and beverage merchandise, the seasonally weaker quarter for journey, and the extended trade downcycle for petrochemicals impacting our newest outcomes,” he stated.
For the primary 9 months, JG Summit recorded a 16% enhance in internet earnings to P17.9 billion, whereas core revenue rose by 39% to P20.3 billion.
The conglomerate’s prime line surged by 10% to P277 billion from P251.3 billion final yr on wholesome demand for journey and leisure actions, the next desire for worth meals and beverage merchandise, and elevated utilization charges within the group’s petrochemical crops.
The meals section led by URC recorded an 18% decline in attributable internet earnings to P8 billion because of the discontinuation of its China enterprise and decrease international trade good points versus final yr.
URC’s prime line rose by 1% to P118.9 billion, led by its worldwide operations and the double-digit progress in its ready-to-drink beverage enterprise.
For the actual property and resorts enterprise, Robinsons Land Corp. (RLC) had slower progress in core and internet earnings to P9.3 billion because of the greater share of minority house owners within the earnings of subsidiary RL Business REIT, Inc.
RLC’s prime line expanded by 4% to P29.3 billion, whereas earnings earlier than curiosity, taxes, depreciation, and amortization rose by 7% to P17.8 billion.
For the airline enterprise, CEB noticed a 33% decline in internet revenue to P3.4 billion as a result of greater depreciation and financing prices associated to its rising fleet.
Core revenue additionally fell by 32% to P3.2 billion.
Income surged by 11% to P74.5 billion amid the 13% enhance in passengers flown as of end-September.
The petrochemicals enterprise led by JGSOC widened its internet loss to P11.4 billion amid “unfavorable international market circumstances.”
Revenues surged 53% from a low base in 2023, carried by “greater plant run charges together with the complete adoption of the pricing software from its business-wide transformation program.”
In the meantime, JG Summit’s fairness share in Manila Electrical Co.’s nine-month internet earnings rose by 19% to P8.7 billion on report excessive gross sales volumes plus greater contributions from its energy era and retail electrical energy provide companies.
For Singapore Land Group (SLG), JG Summit’s nine-month outcomes account for the first-half efficiency solely, given SLG’s semiannual regulatory reporting frequency. Fairness earnings from SLG rose by 15% to P1.3 billion on a stronger resort enterprise and better rental earnings.
Dividends acquired by JG Summit from PLDT Inc. slipped by 11% to P2.3 billion because of the absence of the particular dividends declared in 2023.
JG Summit acquired P373 million in money dividends from the Financial institution of the Philippine Islands (BPI) given the effectivity of the BPI and Robinsons Financial institution merger earlier within the yr.
On Wednesday, JG Summit shares fell by 3.23% or 75 centavos to P22.45 apiece. — Revin Mikhael D. Ochave
