JG Summit Holdings Inc., the holding firm of the Gokongwei family, said its net income grew 61 percent during the first quarter of the year ending March on the double-digit earnings of its airline business, which benefited from the drop in fuel prices.
The company said its income rose to P9.63 billion for the first three months of the year, from last year’s P5.98 billion.
Revenues grew 6 percent to P60.6 billion, from P57.05 billion last year, as most of its subsidiaries posted strong performance for the three-month period.
“Revenues from our core investments, however, declined this period, as dividend income received by the group dropped 34 percent to P1.3 billion, from P1.57 billion last year, mainly due to lower dividends declared by PLDT [Philippine Long Distance Telephone Co.] for the period,” the company said.
Equity in net earnings of associates, primarily from investments in Singapore-listed United Industrial Corp. and Manila Electric Co. rose to P1.83 billion from last year’s P1.68 billion.
Budget carrier Cebu Air Inc.’s total revenues went up 13 percent to P16.11 billion from P14.2 billion last year.
Passenger volume rose 13 percent in passenger volume, while it reached a 9.8-percent increase in average ancillary revenue per passenger, partially offset by a 1.6-percent decrease in average fares.
The JG Petrochemicals Group revenues increased 28 percent to P6.7 billion, from P.23 billion last year, due to an increase in volumes of polymers sold and olefins exported.
Revenues of its property-development arm rose 12 percent to P5.47 billion, from P4.88 billion in 2015, brought about by the additional revenue contribution of the four newest malls, three office buildings and the new hotels in Ortigas Center, Butuan and Quezon City.
Food unit Universal Robina Corp. revenues declined to P28.53 billion, from P28.65 billion, due to a decrease in net sales in its branded consumer foods group, both domestic and international, farms and sugar businesses, offset by the increase in feeds business and sales contribution from the renewable-energy businesses.
Banking revenues, meanwhile, increased 12 percent to P808.99 million, from P721.22 million, due to an increase in interest income recognized from finance receivables and commission income.
The group’s operating expenses increased by 14 percent to P10.67 billion, from P9.32 billion last year, due to higher selling, general and administrative expenses, particularly in the food and airline business units, the company said.
