JG Summit Holdings Inc., the flagship of the Gokongwei Group, eked out higher earnings in the first nine months despite a plant shutdown that dragged quarterly revenues and weighed on several business units.
The conglomerate posted a P31.5 billion net income from continuing operations for the period, up from P28.3 billion a year earlier, lifted by stronger operating income across its airline, food, and property units. Net income attributable to equity holders reached P18.8 billion, slightly higher than last year’s P17.9 billion.
The biggest drag came from JG Summit Olefins Corp.(JGSOC), whose temporary shutdown pulled third-quarter revenues down 6 percent to P83.5 billion. Without JGSOC, JGS said topline would have grown 6 percent year on year—slower than its year-to-date pace because of typical airline seasonality. Including the olefins impact, consolidated revenues for the nine-month period were flat at P277.5 billion.
Cost of sales and services fell 4 percent to P185.6 billion as JGSOC’s lower production costs offset higher raw material expenses at Universal Robina Corp. However, service costs jumped 17 percent on the back of elevated aircraft maintenance and traffic servicing expenses at Cebu Pacific.
General and administrative costs climbed 8 percent to P49.9 billion, driven mainly by Cebu Pacific’s higher depreciation from new aircraft and engines, alongside increased personnel and outsourced service expenses across the group.
Operating income rose 14.7 percent to P42.0 billion, while EBITDA increased 13.8 percent to P69.0 billion. Financing costs grew 11.6 percent to P14.5 billion after JG Summit absorbed JGSOC’s debt and full interest charges.
Market valuation gains of P620 million offset foreign exchange losses of P680 million, while other income fell sharply amid the absence of last year’s merger-related gains.
