JG Summit profit drops 25 pct in 2013

Posted at 03/27/2014 2:54 PM

MANILA, Philippines - Gokongwei-led JG Summit Holdings reported a 25.5% drop in attributable net income to P10.1 billion in 2013.

In a disclosure to the stock exchange, JG Summit said the decline in profit was due to the P4.1 billion in foreign exchange losses as a result of the peso's 8% depreciation in 2013. In 2012, the group reported a foreign exchange gain of P1.4 billion.

However, the group's consolidated core net income grew 22% to P13.41 billion in 2013.

Consolidated revenues rose 9% to P135.59 billion in 2013, on the back of strong performance of its subsidiaries. Universal Robina Corp. reported its revenues jumped 13.8% to P81 billion in 2013, while Cebu Air (operator of Cebu Pacific) saw its revenues increase 8% to P41 billion and Robinsons Land's total revenues went up 18% to P15.9 billion.

"This was brought about by the continuing growth of disposable incomes, personal consumption expenditures and the aggressive sales and marketing efforts of these subsidiaries," the company said.

JG Summit said dividend income from its investments in PLDT, among others, rose 4% to P3.33 billion in 2013.

Operating expenses for the group surged 18% to P25.9 billion in 2013, due to higher selling and general expenses in the airline and food business.

In 2013, JG Summit spent around P36 billion in capital expenditures.