Gokongwei holding firm still in the red even as revenues near pre-pandemic levels

JG Summit Holdings Inc. logged a loss of P2.7 billion from January to June this year, swinging from a profit of P936.69 million a year ago amid surging oil and input costs as well as the impact of the sharp peso depreciation on its foreign currency-denominated debt.

The Gokongwei-led conglomerate reported substantial improvements in both topline and core profits in the second quarter, boosting consolidated revenues in the first six months by 29 percent to P151.1 billion, which is already over 95 percent back to its pre-pandemic level.

Second quarter revenues jumped 53 percent year on year and 27 percent quarter- on-quarter to P84.4 billion while core net income grew 48 percent to P2.1 billion, reversing the P689 million loss in the first quarter due to the rebound in airline, mall and hotel operations, as well as significant contributions from its core investments.

JG Summit president and CEO Lance Gokongwei attributed the group’s strong recovery in the second quarter to the reopening of the economy .

“ We are cognizant that significant challenges remain in the near term with the extraordinary cost pressures, rising interest rates and peso devaluation. Our business units have implemented measures on how to mitigate the margin erosion through selective pricing actions and productivity initiatives,” Gokongwei said.

“Given the strong demand for products and services despite the high inflationary environment in the 1H22, we remain optimistic that further easing of restrictions especially on international travel as well as the resumption of face-to-face classes in the 2H22 will sustain the topline growth momentum,” he added.

JG Summit’s cash of P31.8 billion as of end-June will be further beefed up by the P12.4 billion gross proceeds from the sale of its partial 3.2 percent stake in Manila Electric Co. in July, and the additional special dividends it expects to receive from PLDT in September.

JG Summit Petrochemicals Corp. incurred a P5.3 billion loss as margins were impacted by higher interest expense, foreign exchange loss and the increase in naphtha consumption costs to $847 per metric ton this year.

Banking arm Robinsons Land Corp. reported a 62 percent jump in first half net income due to the expansion of its loan portfolio and higher net interest margins.

Profit of Yap-led CEU clobbered by pandemic restrictions

Centro Escolar University (CEU), controlled by he heirs of the late Don Emilio Yap, saw a 23 percent decline in net income during its fiscal year ending May this year to P119.05 million due to the deferral of revenues and recognition of contract liabilities.

Germany raids properties belonging to Russian oligarch

German investigators on Wednesday raided properties belonging to a Russian oligarch suspected of tax evasion and breaking EU sanctions, police and prosecutors said, with sources naming billionaire Alisher Usmanov as the target.

GOLD! Trending Today
PLATINUM! Trending This Week
TITANIUM! Trending This Month