Monday, 17 August 2009

JG Summit rebounds with P3.9-billion profit

Manila Bulletin

JG Summit Holdings’s net income for the 1st half of 2009 amounted surged 514.8 percent to P3.87 billion on the back of a recovery in the second quarter.

The firm said that the second quarter brought in record results as JG Summit netted profits of P3.01 billion (compared to P864 million in the first quarter) since the company benefited from the initial signs of stabilization on the global financial markets front even as the peso depreciated during the period.

Even excluding the effects of the financial and foreign exchange markets, JG Summit said it still showed marked improvement as core earnings for the first six months increased 12.3 percent from P4.90 billion in 2008 to P5.50 billion in 2009.

Consolidated revenues were up 15.5 percent from P46.20 billion to P53.34 billion driven by the continued growth in sales and revenues of its core businesses, mainly: Foods, airline and the mobile phone business.

In addition, equity in net earnings of associates recorded an 82.4 percent growth during the period, from P911.62 million last year to P1.66 billion during the first half of this year. Revenue growth, however was tempered by the decline in sales of JG Summit’s petrochemical business by 42.4 percent to P2.50 billion during the period.

Financing costs and other charges incurred for the six months of the year increased 29.8 percent to P3.58 billion mainly due to higher level of debt financing during the period as well as the higher peso-exchange rate used.

Mark-to-market gains recognized during the period amounted to P1.14 billion as compared to a loss of P1.78 billion recorded for the same period last year.

The market values of the Group’s financial assets have shown signs of recovery especially in the second quarter, brought about by the improving confidence in the global financial markets.

Foreign exchange loss recorded for the first six months of 2009 amounted to P1.07 billion, a 59.5 percent decrease from P2.64 billion for the same period last year mainly due to higher peso devaluation during the first six months of last year.

Interest income declined 19.5 percent for the first six months of 2009 from P1.17 billion last year to P943.66 million this year due to lower average investment portfolio during the period as compared to last year’s.

The Other income account dropped 55.4 percent for the first half of 2009 from P752.57 million in 2008 to P335.70 million mainly due to lower trading gains (actual) realized this year in our financial assets as compared to the same period last year and also due to last year’s recognition of gain on early repayment of various debts by a certain subsidiary.

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