Wednesday, 21 April 2010

JG Summit records P8.55B in profit for ’09 due to mark-to-market gains

N. J. C. Morales
BusinessWorld
http://www.bworldonline.com/main/content.php?id=9460

PROFITS OF Gokongwei-led JG Summit Holdings, Inc. ballooned to P8.55 billion last year on the back of mark-to-market gains in financial instruments.

The latest figure is a turnaround from a P690-million net loss in 2008, JG Summit told the local bourse yesterday.

The holding firm said “we recognized gains in mark-to-market valuation in 2009 as financial markets improved from a loss in the previous year.”

Consolidated revenues went up by 9% to P107.96 billion from P99.07 billion year on year, while cost of sales barely moved up to P64.4 billion from P64.23 billion.

Assets, meanwhile, rose to P277.88 billion as of end-2009 from P250.89 billion as of end-2008.

From operations alone, profits stood at P15.2 billion last year, up from P11.3 billion in 2008.

Units of JG Summit, one of the most diversified conglomerates in the country, include snack and beverage giant Universal Robina Corp., budget carrier Cebu Air, Inc. and property and mall developer Robinsons Land Corp.

Profits of Universal Robina, which will spend P4 billion in the fiscal year 2010 for expansion, jumped to P3.89 billion from P381 million given higher sales.

Cebu Air, which plans to list on the local bourse after the elections, ended the year with a P3.26-billion net income, turning around from a P3.25-billion net loss in 2008.

Robinsons Land, which plans to open two new malls and budget hotels, increased profits by 3.8% to P3.27 billion last year.

Digital Telecommunications Phils., Inc., operator of the Sun Cellular mobile phone service, turned around to a P259.7-million net income last year from a P1.98-billion loss in 2008.

Robinsons Savings Bank -- which will buy RBS (Philippines), Inc. from The Royal Bank of Scotland (RBS) Group Plc and the Royal Bank of Scotland N.V. -- recorded a 41.2% rise in net income to P143.59 million.

Shares in JG Summit dropped to P9.30 each yesterday from P9.60 on Monday.

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