JG Summit Holdings Inc. (JGS) grew its nine-month profit by 16 percent to P17.9 billion on the back of a double-digit topline expansion coupled with the gains realized from the merger of Robinsons Bank with the Bank of the Philippine Islands.
Topline hit P277 billion, up 10 percent, powered by a healthy demand for travel and leisure activities, higher preference for value food and beverage products, and increased utilization rates in JGS’ petrochemical plants.
“Improving contributions from the conglomerate’s core investments, widening EBITDA (earnings before interest, taxes, depreciation and amortization) margins for most core businesses, and the gain from the bank merger earlier this year allowed core profits to rise 39 percent to P20.3 billion. These were more than enough to outpace the increases in depreciation and interest expenses observed across its subsidiaries,” the company said in a statement.
“While the overall macro environment is expected to rebound with the easing inflation, most of our businesses are still affected by the weaker consumer sentiment that has dampened demand for products and services. We are seeing the propensity of consumers towards value food and beverage products, the seasonally weaker quarter for travel and the prolonged industry down cycle for petrochemicals impacting our latest results,” said Lance Gokongwei, JG Summit chief executive officer.
“We, however, expect a better fourth quarter to finish the year on a good footing. This will also establish a stronger base as we pursue initiatives to sequentially drive better topline growth and margins across our operating units,” Gokongwei added.
Unit Cebu Air Inc. reported a P173- million loss on margin pressure from additional fleet and financing expenses.
Revenues rose 11 percent to P74.5 billion, driven by a 13- percent increase in passengers at 17.5 million. Cebu Air generated an average seat load factor of 84.9 percent.
Operating income was at P5.7 billion, down 8 percent.
“The margin pressure was driven by increased expenses in relation to the airline’s investment in additional aircraft and engines,” Cebu air said.
