Gokongwei's JG Summit posts lower profit on weak peso

PHILIPPINES, Manila : Cebu Pacific chief executive Lance Gokongwei speaks during a press conference in Manila on June 16. AFP PHOTO / NOEL CELIS

PHILIPPINES, Manila : Cebu Pacific chief executive Lance Gokongwei speaks during a press conference in Manila on June 16.

AFP PHOTO / NOEL CELIS

MANILA, Philippines – The Gokongwei group's holding firm reported lower earnings in the first 9 months due largely to losses arising from the weakening of the peso.

In a financial statement sent to the Philippine Stock Exchange on Monday, November 11, JG Summit Holdings Inc. said its January-September net income fell 21.8% to P8.41 billion from P10.76 billion a year ago.

JG Summit said it recognized a net foreign exchange loss of P2.85 billion, reversing a net gain of P1.22 billion last year, as its liabilities grew as a result of the depreciation of the peso against the US dollar.

It added "market valuation gains have been minimal due to volatility in international capital markets."

JG Summit owns food and beverage company Universal Robina Corporation, property developer Robinsons Land Corporation, budget carrier Cebu Pacific, petrochemical company JG Summit Petrochemicals Corporation, and Robinsons Bank Corporation.

Consolidated revenues in the 9-month period rose 9.4% to P110.9 billion from P101.37 billion.

Except for the petrochemical business, JG Summit said all its units performed strongly. – Rappler.com


Photo from AFP