Filinvest, JG Summit post higher profits

Conglomerates owned by the Gokongwei and the Gotianun families reported strong profit growth in the

first nine months, buoyed by the positive performance of core businesses.

JG Summit Holdings Inc., the investment company of retail and airline tycoon John Gokongwei, said net income in the first nine months surged 88.4 percent to P15.85 billion from P8.41 billion recorded in the same period last year.

Filinvest Development Corp., the holding firm of the Gotianun family, said core net income jumped 25 percent in the same period.

JG Summit said consolidated revenues in January to September grew 19.3 percent to P111.18 billion from P132.6 billion a year ago. JG Summit’s core units include food manufacturer Universal Robina Corp., airline company Cebu Air Inc. and property developer Robinsons Land Corp.

URC reported a 15.2-percent hike in revenues to P69.2 billion from P60.1 billion. Cebu Air’s revenues increased 25.7 percent to P38.45 billion from P30.58 billion.  Robinsons Land’s revenues also improved 5.3 percent to P13.05 billion from P12.39 billion.

“Growth was all brought about by the aggressive sales and marketing efforts of these subsidiaries,” JG Summit said.

JG Petrochemical’s revenues, however, declined 42.5 percent to P556.8 million from P967.74 million posted in the same period last year as it was still on a technical shutdown since October 2012 to prepare for the completion and integration of its naphtha cracker.

Meanwhile, FDC said consolidated revenues went up 8.2 percent to P27.6 billion in the first nine months from P25.5 billion last year, primarily due to positive results delivered by property business.

“The Filinvest group has been in an aggressive investment mode with the unprecedented branch expansion of East West Bank, the buildup of office building portfolio of FLI as well as the construction of Mindanao’s largest power plant. Such expansion will provide the necessary infrastructure for future solid growth but is expected to impact the group earnings in the short term,” FDC president and chief executive Josephine Gotianun Yap said.

Yap said the company was expecting power subsidiary FDC Utilities Inc. to start contributing revenue ahead of schedule by 2015.

FDCUI won the right to manage 140-megawatt contracted capacity of the Mount Apo and Unified Leyte geothermal power plants.
Source: Manila Standard Today