JG Summit nets lower in first nine months
JG Summit Holdings, Inc., the flagship of the Gokongwei group and the parent firm of snackfood and beverage company Universal Robina Corp. (URC), had seen its attributable consolidated net income for the first nine months of the year dropped by 7.9 percent to P21.24 billion due to lower earnings of its airline business.
In a disclosure to the Philippine Stock Exchange, JG Summit explained that the lower net income of its airline business Cebu Air was affected by the rise in fuel prices as well as some mark-to-market hedging losses as compared to hedging gains for the same period last year.
This was made worse by the depreciation of the Philippine peso and international subsidiaries’ local currencies against the US dollar.
For the period, the firm’s consolidated core net income after taxes (excluding non-operating and nonrecurring items) amounted to P22.69 billion, which was a bit higher than the P22.63 billion it had in the same period in 2016.
Its consolidated revenues, on the other hand, grew 14.0 percent to P202.64 billion in the first nine months of 2017 from P177.80 billion in the same period last year as subsidiaries posted higher numbers.
During the period, URC’s total revenues posted a 13.1 percent growth from P81.73 billion to P92.42 billion for the nine months of 2017 primarily because of a 38.9 percent increase in net sales of the international operations of our branded consumer foods group.
URC is the company responsible for brands like C2, Great taste Coffee, Jack n’ Jill, Calbee among many others.