JG Summit Holdings, Inc.
JG Summit posts 44% income growth
By Mary Grace Padin (The Philippine Star) | Updated November 16, 2016 - 12:00am

MANILA, Philippines – JG Summit Holdings Inc. posted a consolidated net income of P23.25 billion in the first nine months of the year, 44 percent higher than the previous year.

The growth was driven mainly by the group’s airline business, which benefited from the drop in fuel prices and fuel hedging gains, and the strong performance of its petrochemicals business brought about by lower costs of the naphtha feedstock during the period.

EBITDA (earnings before interest, tax, depreciation and amortization) increased by 12 percent to P52.88 billion while core net income rose 10 percent rose to P22.83 billion.

The group’s consolidated revenues increased by 4.6 percent to P177.52 billion.

Its airline business under Cebu Air led the growth, posting a 10.5 percent rise in revenues to P46.69 billion, driven by the six percent increase in passenger volume and 8.4 percent hike in average ancillary revenue per passenger.

Robinsons Land Corp. registered a 15.2 percent growth in revenues to P16.81 billion owing to stronger real estate sales, as well as the rental income contribution of its four newest malls and three office buildings.

Revenues of Robinsons Bank also increased by 14.9 percent to P2.51 billion, mainly due to increase in interest income recognized from finance receivables.

JG Petrochemicals Group also posted an 8.2 percent growth in revenues to P21.03 billion.

On the other hand, Universal Robina Corp. reported a slight decrease in revenues to P81.73 billion due to the decline in the sales of branded consumer foods, as well as products abroad.

Revenues from JG Summit’s core investments also declined as of the end of September this year as dividend income fell 29.4 percent to P1.99 billion. This was primarily due to lower dividends declared by PLDT Inc. during the period.

Equity in net earnings of associates, primarily from investments in United Industrial Corp. and Manila Electric Co. slightly went up to P6.35 billion.

During the period, the group also recorded equity earnings from the purchase of a 30 percent stake in Global Business Power Corp. last June 28.

Operating expenses grew 10.8 percent to P31.93 billion due to higher selling, general and administrative expenses incurred by the airline and food business units.

Operating income rose 10 percent to P40.23 billion.

As of the end of September this year, JG Summit had assets of P647.89 billion.
...joining AGI in infrastructure foray

JG Summit eyes airports, infrastructure projects

The infrastructure arm of JG Summit Holdings Inc. disclosed a plan to submit unsolicited projects to the government to develop airports and other transport infrastructure projects.

“I think transport related, primarily. We are still looking for opportunities,” JGSHI president and chief operating officer Lance Gokongwei told reporters, when asked about the plans of the newly-created infrastructure unit.

The Securities and Exchange Commission approved in September the incorporation of JGSHI.

JG Summit earlier teamed up with Filinvest Group to develop Clark International Airport for P187 billion, but the proposal was rejected by the Transportation Department as the government chose to undertake the expansion of the airport by itself.

JG Summit also teamed up with Metro Pacific Investments Corp. to jointly bid for the P17.5-billion Mactan-Cebu International Airport passenger terminal project, but it lost to GMR-Megawide Group.

The company has interests in airline, real estate, banking, food and beverage and petrochemical. It also holds minority interests in power generation and telecommunications.

JG Summit, the investment company of tycoon John Gokongwei, earmarked P48.2 billion for 2017 capital expenditures, higher than P41.9 billion it spent in 2016, to expand operations of core businesses.

Of the total, Universal Robina Corp, the group’s food manufacturing unit, budgeted P7.2 billion to expand the capacities of existing facilities both here and abroad.

Property unit Robinsons Land Corp. allocated P16 billion to construct new malls, offices, hotels and land banking activities.

The balance will be used for fleet expansion of Cebu Air, operator of Cebu Pacific and Cebgo; operating and maintenance capex of the petrochemicals group; and the expansion and maintenance projects of Robinsons Bank Corp.

JG Summit posted a consolidated net income of P14.64 billion in the first half of the year, down 16.5 percent from P17.53 billion in the same period last year.

Consolidated core net income amounted to P15.95 billion, slightly lower than 15.99 billion in same period in 2016.

Revenues went up 12.6 percent to P134.47 billion from P119.38 billion.

source: http://manilastandard.net/business/biz-p...jects.html

BCDA, DOTr to review Clark airport proposal of JG Summit, FDC

The Bases Conversion and Development Authority (BCDA) and the Department of Transportation (DOTr) are set to review the unsolicited proposal of the consortium composed of Filinvest Development Corp. (FDC), JG Summit Holdings Inc. and Changi Airports International for the long-term development of the Clark International Airport.

In a joint statement yesterday, the BCDA and DOTr said they have received the unsolicited proposal from the consortium.

“The DOTr and BCDA will thoroughly review the legal, technical, and financial aspects of the proposal within a specified timeline and strict deadline based on the required processes and regulations,” the joint statement read.

Last week, FDC and JG Summit announced they have submitted their unsolicited proposal to the BCDA and the DOTr which would involve the investment of P839 billion for the long-term development of the Clark International Airport.

Under the proposal, the consortium would augment the capacity of the airport, expand facilities including terminals and runways, as well as operate and maintain the existing and new passenger terminals.

The consortium also intends to develop, operate and maintain the commercial assets of the Clark International Airport, which include facilities for general aviation and fixed-base operations and real estate.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1
This offer is different from the P187 billion unsolicited proposal submitted by FDC and JG Summit earlier, as it does not include the construction of the second terminal building.

The government had earlier rejected the P187 billion proposal as it has decided to pursue the development of the Clark airport using the hybrid public-private partnership approach.

Meanwhile, the DOTr and BCDA said they are on track with the bidding for the construction of a new passenger terminal building in the Clark International Airport.

Some 12 local and foreign firms bought bid documents for the construction of the new terminal building for the Clark airport.

Deadline for submission of bids is on Dec.5, while the construction contract will be awarded to the winning bidder on Dec.15.

The government is developing Clark airport as an alternate global gateway.

source: http://www.philstar.com/business/2017/11...summit-fdc

...inacknowledge na ni JGS kailangan na din nya pumasok sa infra

JG Summit continues to look for opportunities in infra sector

G Summit Holdings Inc., continues to look for opportunities in infrastructure, Lance Gokongwei, its president, said in a recent interview with reporters.

“We will continue to consider other opportunities,” Gokongwei said when asked what’s next for JG Summit after submitting an unsolicited proposal for the long-term development of the Clark International Airport.

Gokongwei, said that for JG’s next infrastructure venture, it’s not necessarily confined to just airport projects.

He said the conglomerate would look into other infrastructure opportunities as they come.

JG Summit has teamed up with Filinvest Development Corp. (FDC) for the redevelopment of the Clark Airport.

The consortium committed to pour in P839 billion for the long-term development and operations of the airport.

It submitted an unsolicited proposal to the Bases Conversion and Development Authority (BCDA) and the Department of Transportation (DOTr).

The submission contains a detailed proposal for the long-term development of the Clark International Airport through a joint venture agreement.

Aside from FDC and JG Summit, the consortium will also include the Changi Airports International (CAI) as the technical partner for the proposed development.

According to their blueprint, the consortium will build future capacity augmentation, expand airport facilities including terminals and runways, among others, as well as operate and maintain the existing and new passenger terminals.

Furthermore, the consortium also proposed to develop, operate and maintain the commercial assets of the Clark International Airport which include facilities for general aviation and fixed- base operations, and real estate.

Gokongwei did not comment on the status of the Clark proposal.

Last September, JG Summit announced the creation of JG Summit Infrastructure Holdings Corp., an infrastructure subsidiary.

The newly formed infrastructure subsidiary is a reflection of JG Summit’s intention to become a major player in infrastructure even as it had earlier expressed interest to join other groups in bidding for the operations and maintenance of airports that the government is developing.

The Duterte administration has vowed to boost infrastructure spending to seven percent of gross domestic product from five percent at present, as it recognizes the need for infrastructure projects in the country such as roads, bridges, airports, among others.

JG Summit’s businesses include airline, food and beverage, property development, banking, power generation, hotel and petrochemicals.

source: http://www.philstar.com/business/2017/12...fra-sector


Filinvest-JG Summit proposal for Clark rejected by government

THE GOVERNMENT has rejected the unsolicited proposal of Filinvest Development Corp. (FDC) and JG Summit Holdings, Inc. (JGS) for the long-term development of Clark International Airport (CIA) in Pampanga.

Department of Transportation (DoTr) Secretary Arthur P. Tugade said the government instead will conduct a bidding for Clark’s operations and maintenance (O&M) contract.

This is in line with the government’s strategy to build the infrastructure for CIA, and bid out the O&M contract to the private sector.

“We approved the parameters and guidelines for O&M, then they will be published, then we will have a bidding process,” Mr. Tugade told reporters on the sidelines of an event on Feb. 22.

Mr. Tugade did not specify a timeline for the bidding process.

Public-Private Partnership Center Executive Director Ferdinand A. Pecson said the O&M contract for Clark is targeted to be rolled out this year.

Last November 2017, the Filinvest-JG Summit joint venture submitted to the DoTr and the Bases Conversion and Development Authority (BCDA)   a P839-billion proposal for the long-term development of the airport, which includes the expansion of terminals and runways, along with the operation and maintenance of passenger terminals.

The Gokongwei and Gotianun companies also proposed to develop, operate and maintain the commercial assets of the CIA, which include facilities for general aviation and fixed-base operations, and real estate. FDC and JGS tapped Singapore’s Changi Airports International as the technical partner for the project.

After evaluation by the DoTr and BCDA, Filinvest and JG Summit’s unsolicited proposal was forwarded to the National Economic and Development Authority — Investment Coordination Committee (NEDA-ICC).

The DoTr had earlier thumbed down the consortium’s P186.64-billion proposal for the expansion of CIA’s passenger terminal building. The government opted to build the infrastructure, and bid out the O&M contract to the private sector.

The government last December awarded the contract for the construction of Clark’s new terminal building to the joint venture of listed builder Megawide Construction Corp. and Bangalore-based airport operator GMR Infrastructure Ltd.

CIA has long been singled out as a potential alternative gateway to Ninoy Aquino International Airport (NAIA), which accommodated over 39.5 million passengers in 2016, well above its 30.5 million designed capacity.

While this is the second time an offer by the FDC and JG Summit was rejected, the two companies are part of the “super consortium” of seven corporations that submitted to the government a P350-billion proposal to rehabilitate NAIA.

Other members of the consortium include Aboitiz Equity Ventures, Inc.’s Aboitiz InfraCapital, Inc.; Ayala Corp.’s AC Infrastructure Holdings Corp.; Alliance Global Group, Inc.; Metro Pacific Investments Corp. and Asia’s Emerging Dragon Corp.

source: http://bworldonline.com/filinvest-jg-sum...overnment/

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JG Summit boosts profit 169% in 2017

MANILA, Philippines — JG Summit Holdings Inc., the conglomerate of the Gokongwei group, grew its consolidated net income 169 percent to P29.37 billion last year.

The P10.92 billion profit in 2016 included impairment losses amounting to P16.71 billion largely due to the decline in market value of the group’s investment in PLDT.

Core net income was relatively flat at P29.56 billion mainly due to the lower earnings of Cebu Air.

JG Summit’s businesses include food and beverage through Universal Robina Corp., petrochemicals under JG Petrochemicals Group, property through Robinsons Land Corp, banking through Robinsons Bank, and airline through Cebu Air.

Consolidated revenues grew 13.7 percent to P273.45 billion owing to the strong performance the different businesses.

 URC’s total revenues rose 11 percent to P125.01 billion last year driven by the 30.1 percent increase in the brand consumer food group’s international sales and 33.6 percent sales growth of the sugar business.

JG Petrochemicals registered a 42 percent jump in revenues due to higher sales volume and average selling price of polymers and olefins.

Cebu Air’s total revenues increased by 9.9 percent to P68.03 billion, mainly due to the 3.2 percent growth in passenger volume and the 3.8 percent increase in average fares.

Revenues of RLC slightly decreased to P22.45 billion due to lower real estate sales.

The banking arm’s revenues grew 31.2 percent to P4.48 billion due to increase in interest income recognized from finance receivables and trading gains.

Revenues from core investments declined this year as dividend income received by the group fell 28.5 percent to P1.45 billion, mainly due to lower dividend income declared by PLDT from P106 per share in 2016 to P6 last year.
JG Summit’s equity in net earnings of associates, primarily from its investments in UIC/Singapore Land and Meralco, increased 21.2 percent to P9.91 billion.

The figure also includes the P719.18 billion full-year equity earnings take-up from Global Business Power Corp.

Operating expenses increased 13.6 percent to P50.16 billion due to higher costs incurred by the food and airline businesses.

source: https://www.philstar.com/business/2018/0...t-169-2017


JG Summit nets P4.8B, a drop of -35%

Gokongwei-led conglomerate JG Summit saw a 35.8-percent year-on-year drop in first quarter net profit to P4.82 billion on slower earnings from the petrochemical and food businesses alongside some foreign exchange losses.

Excluding non- operating and non-recurring items, JG Summit’s consolidated core profit amounted to P6.35 billion for the first quarter, marking a 22.9-percent decline.

Consolidated revenues grew by 4.7 percent to P70.68 billion in the first quarter but operating expenses and financing charges expanded at a faster pace.

Universal Robina Corp.’s first quarter net income declined by 12.4 percent to P2.95 billion due to the underperformance of domestic snacks and beverages businesses, in turn as a result of lower volume and unfavorable mix in the coffee category.

JG Petrochemicals also saw a 65.5-percent drop in first quarter net profit to P826.3 million due to the decline in the sales volume, partially offset by the higher average selling prices during the period.

On the other hand, Robinsons Land Corp. grew its first quarter net profit by 11.8 percent year-on-year to P1.54 billion. Total real estate revenues increased by 18.2 percent to P5.88 billion while hotel revenues were also up by 4.1 percent to P474.6 million. The shopping mall business contributed 46 percent or P2.88 billion of RLC’s gross revenues, posting a 7.1-percent growth, due to same mall rental revenue growth and rental revenue contribution of the new malls.

Airline unit Cebu Air also grew its first quarter net profit by 12 percent year-on-year to P1.44 billion mostly due to the 10-percent increase in average fares alongside a growth in passenger volume to 4.88 million from 4.81 million in the same period last year.

Robinsons Bank grew its first quarter net profit by 60.8 percent year-on-year to P100.08 million on higher interest income.

Meanwhile, equity in net earnings of associated companies and joint ventures amounted to P2.46 billion for the first quarter, up by 21 percent year-on-year due to higher earnings from Manila Electric Co., Global Business Power Corp. and Singaporean property developer UIC.

source: http://business.inquirer.net/250883/jg-s...nets-p4-8b


JG Summit units hit by Boracay closure, TRAIN

JG Summit Holdings, Inc. President and CEO Lance Gokongwei during the company's annual stockholders' meeting Monday, May 28, at the Crowne Plaza in Ortigas. (Photo by Kris Crismundo)

MANILA -- Business units of Gokongwei-led JG Summit Holdings, Inc. were hit hard by the shutdown of Boracay island and the implementation of Tax Reform for Acceleration and Inclusion (TRAIN) law this year, according to a report by top management.

During the firm’s annual stockholders’ meeting, JG Summit President and Chief Executive Officer Lance Gokongwei said its airline company Cebu Pacific is expected to lose about PHP500 million to PHP1 billion due to the government’s rehabilitation of Boracay, which expected to keep the popular tourist trap closed for 6 months.

Gokongwei mentioned that the Caticlan and Kalibo flights, which are the gateways to the island, account for 6 to 7 percent of Cebu Pacific’s domestic flights' passengers. “For the first six months, we anticipate there should be approximately PHP500 [million] to a billion peso reduction in revenues during that period. It takes time to transfer flights to other destinations,” said Gokongwei.

“But overall, we think that this is still a strong positive for the country as we expect that Boracay will return as even more popular destination after the rehabilitation,” he added.

On the sidelines of the event, Gokongwei said it is the unexpected spike in global oil prices coupled with a weaker peso that has really affected its airline business.

He cited that additional operation cost for Cebu Pacific for every dollar increase in fuel prices is approximately at PHP20 million, while the peso depreciation costs PHP65 million for the company. “In aggregate, it’s costing us about PHP700 million more per month to fly to the same network,” he said.

The executive said Cebu Pacific is seeking the approval of the Civil Aeronautics Board for the airline to implement fare increase of PHP70 to PHP250 for its domestic flights, which will only recover half of the cost increase.

Moreover, the TRAIN law has also affected JG Summit’s food and beverage unit Universal Robina Corp. (URC).

For its C2 products alone, the sugar-sweetened beverage tax reduced the tea product’s volume in first quarter of 2018 by 12 to 15 percent due to higher prices, according to Gokongwei. “We put in an average price increase of about 22 to 23 percent. This effectively just recover the increase in sugar taxes,” he said.

Meanwhile, JG Summit is spending PHP78.1 billion this year, surging from PHP43.5 billion capital expenditure (capex) last year.

This year’s capex will be divided to Robinsons Land with PHP30 billion, JG Summit Petrochemical Group with PHP20 billion, Cebu Pacific with over PHP20 billion, URC with PHP7 billion to PHP8 billion, and the balance for the conglomerate’s smaller subsidiaries

source: http://www.pna.gov.ph/articles/1036739


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