JG Summit Announces P2.8-B Net Loss – Manila Bulletin

JG Summit Holdings, Inc. (JGS), the flagship of the Gokongwei Group, recorded a net loss of 2.8 billion pesos for the first quarter of 2022 on a net profit of 526.52 million pesos in the same period. last year.

In a statement to the Philippine Stock Exchange, the company said it has maintained its recovery momentum, increasing its revenue for the first quarter of 2022 by 7% from P67.64 billion in the same period. last year and 6% quarter-on-quarter (QoQ) as mobility restrictions eased.

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“Revenue growth was evident across all subsidiaries except Robinsons Land Corporation (RLC), whose strong recovery is masked by a high base that was boosted by revenues from its Chengdu Ban Bian project. Jie last year,” said JG Summit.

Excluding the Chengdu effect, JGS’s total revenue growth would be 28% higher. It did not provide gross revenue for the first quarter of 2022.

“While the reopening of the economy has fueled significant improvements in top line revenue and significantly reduced Cebu Air Inc.’s net base losses, unprecedented volatility in oil and input prices has weighed on the margins of the group, especially at JG Summit Olefins Corporation (JGSOC),” JG Summit said.

He noted that “As a result, JGS recorded a consolidated basic net loss of 689 million pesos in the first quarter of 2022 compared to a basic net income of 232 million pesos in the same period last year (SPLY). ” Coupled with the depreciation of the peso and losses in market value, JGS ended the quarter with a net loss of 2.8 billion pula.

Lance Gokongwei, President and CEO of JG Summit Holdings

“For the first quarter of this year, we saw that the reopening of the economy had a positive impact on most of our subsidiaries, with our overall revenues showing improvements quarter-over-quarter and year-over-year. on the other,” said the President and CEO of JG Summit. said Lance Gokongwei.

However, he noted that “market volatility with rising oil prices and key input costs, coupled with the depreciation of the peso, has affected our profitability and we expect this to persist and put pressure on our margins”.

To mitigate these risks, Gokongwei said they are proactively managing pricing and product mix, and at the same time implementing productivity initiatives and cost management measures.

Universal Robina Corporation’s revenue increased 22% year-on-year to 35.8 billion pesos. Higher EBIT combined with foreign exchange gains resulted in a 16% increase in net profit to 3.5 billion pesos.

RLC’s revenue and net profit fell by 61% and 51% to P6.4 billion and P1.4 billion, respectively, mainly due to the high base bolstered by the lump sum contribution from Phase 1 of Chengdu last year.

Excluding Chengdu and the cancellation of deferred tax liability due to the enactment of the CREATE law in 2021, revenue and net profit increased 6% and 4% year-on-year, respectively.

CEB’s revenue in the first quarter of 2022 increased 148% year-on-year to P6.7 billion, given the continued recovery in travel demand as COVID cases remain low in the Philippines.

Strong revenue growth offset increases in fuel prices and reduced the basic net loss to 5.1 billion pesos from 7.5 billion pesos last year.

However, unrealized market value losses of Php 2.2 billion were recorded due to the higher value of the underlying conversion option of CEB’s convertible bonds, in line with the price increase of the CEB share. This drove the net loss to Php 7.6 billion.

JGSOC’s revenue in the first quarter of 2022 increased 37% year-on-year to 12.4 billion pesos, driven by higher polymer sales value as well as further contributions from aromatics sales and of butadiene, as well as the trading of LPG.

Taking into account the higher interest charges and the foreign exchange loss due to the depreciation of the peso, JGSOC recorded an overall net loss of Php 2.1 billion.

Robinsons Bank Corporation’s revenue rose 5% year-on-year to 2.4 billion pesos on higher interest income, partially offset by lower trading gains.

A larger loan portfolio, coupled with higher net interest margins (NIMs) and a lower cost-to-income ratio, drove RBank’s 93% net profit growth to 452 million pesos.

JGS’s net profit from Meralco increased 30% to 1.6 billion pesos, while PLDT’s total dividend income was 1.0 billion pesos, up 5% year-on-year .

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