MANILA - JG Summit Holdings Inc. on Tuesday said earnings climbed by a quarter in the first half of its fiscal year because of foreign exchange gains and the stronger performance of operating companies.
In a disclosure to the Philippine Stock Exchange, the Gokongwei-led conglomerate said net profit attributable to equity holders of the parent jumped 25 percent to P7.47 billion in the first six months of the year from P5.98 billion in 2011.
"The increase in net income was buoyed by the further appreciation of peso against the US dollar in the second quarter of the year, resulting in higher foreign exchange gains recorded by the group during the period," JG Summit said.
However, its net income attributable to equity holders slid 20 percent to P2.56 billion in the April to June period from P3.19 billion in the same period last year.
Consolidated revenues went up by a tenth to P67.09 billion in the first half from P61 billion due to the strong performance of all business units.
Consolidated cost of sales and services rose 14.1 percent to P47.69 billion from P41.80 billion.
Mark-to-market gains recognized during the first half amounted to P960.60 million, a 94.7 percent increase from last year’s P493.28 million because of recoveries from bond investments and gains from additional investments acquired during the period.
Net foreign exchange gains hit P1.30 billion, a turnaround from last year’s net foreign exchange loss of P41.72 million due to a more stable peso during the period.
Financing costs and other charges decreased 17.2 percent to P2.34 billion from last year’s P2.82 billion.
Likewise, the stronger peso vis-à-vis the US dollar in 2012 also contributed to the decline.
JG Summit has investments in food and beverage, real estate, airlines, banking and petrochemicals.
source: interaksyon.com
