Monday, 17 May 2010

JG Summit quadruples profit to P4.4 billion

In first quarter
By JAMES A. LOYOLA
Manila Bulletin
http://mb.com.ph/articles/257563/jg-summit-quadruples-profit-p44-billion

JG Summit Holdings, the flagship of the Gokongwei group, posted a 410 percent growth in net income for the first quarter of 2010, to P4.41 billion from P863.99 million in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said the continuous recovery of the financial markets and the strengthening of Philippine Peso vis-á-vis the US dollar contributed to the Group’s remarkable performance during the period.

However, even excluding these items, the Group’s core earnings still showed a 100.7 percent growth for the first three months from P2.42 billion to P4.86 billion during the period, while EBITDA reached P8.80 billion from P6.43 billion for the same period last year.

Consolidated revenues were up 13.5 percent from P26.18 billion to P29.73 billion due to the strong performance of most business units.

The substantial growth was driven by the continued improvement in sales and revenues of JG Summit’s businesses in foods, airline and real estate development, and telecoms business particularly in the wireless segment.

“Only our petrochemical business showed a decline in sales by 7.6 percent to P937.66 million during the period,” the firm said.

Consolidated cost of sales and services for the first three months of the year only increased 4.0 percent from P16.17 billion last year to P16.82 billion for the first three months of fiscal year 2010 despite higher revenues.

The increase was brought about by higher cost of sales and services recorded by the airline and wireless businesses, but this was offset by lower cost of sales recorded by URC as a result of lower costs of raw materials.

Aside from this, Robinsons Land Corporation also recognized lower cost of sales due to lower percentage of completion during the period.

Consolidated operating expenses increased 14.2 percent as a result of higher general and administrative expenses in our mobile phone network, increased airline operations and higher selling and distribution costs of the food business.

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