JG Summit nets P450M income

Gokongwei-led JG Summit Holdings Inc. on Wednesday reported a core net income after taxes of P450 million last year.

The company’s full-year consolidated revenues, meanwhile, fell by 27 percent to P221.6 billion in 2020.

In a disclosure, the diversified conglomerate said the double-digit revenue growth in its banking and office segments, the robust sales in food and the higher dividends from its telecommunications investment tempered the impact of the pandemic to its overall operating results.

“Coming from a very strong 2019, Covid-19 (coronavirus disease 2019) has clearly disrupted the business which dented our 2020 operating and financial results. Nonetheless, our diversified portfolio of market-leading businesses coupled with the strength of our balance sheet helped us navigate the situation,” JG Summit President and Chief Executive Officer Lance Gokongwei was quoted as saying.

The firm’s food and beverage arm, Universal Robina Corp. , saw a full year profit increase of 10 percent to P10.7 billion and a flat topline of P133.1 billion last year.

Robinsons Land Corp. (RLC), meanwhile, recorded 18-percent weaker 2020 revenues of P24.9 billion as its malls and hotels posted double-digit revenue declines due to the lockdowns.

RLC’s industrial and integrated developments division was also down last year.

These declines, however, were tempered by the 10-percent growth in its office division.
The travel restrictions and flight cancelations amid the pandemic impacted budget carrier, Cebu Air Inc.

Low passenger volumes and hedging losses resulted in a net loss of P22.2 billion, while reduced operations downed its revenues by 73 percent to P22.6 billion last year.

JG Summit Petrochemicals Group was likewise unprofitable as it incurred a loss of P2 billion last year.

The firm’s full year revenues, on the other hand, slipped by 27 percent to P21.3 billion.
Robinsons Bank Corp., JG Summit’s banking segment, saw 13-percent better revenues of P9.2 billion due to increased loans and gains from trading activities.

The bank’s net income also climbed 30-percent year-on-year to P935 million.

Article and Photo originally posted by Manila Times last April 4, 2021 and written by Faye Alamaza.