Feeling the pressures of inflation, higher financing costs and a falling peso, JG Summit Holdings Inc. of the bilyonaryo Gokongwei family swung to the red in the third quarter.

JG Summit incurred a net loss of P3.37 billion in July to September, reversing the P844.1 million profit booked last year due to record-breaking cost inflation which weighed on the performance of units Cebu Air. JG Summit Petrochemicals Group and Universal Robina Corp.

The conglomerate’s nine percent rise in third quarter and nine-month revenues to P50.4 billion and P67.9 billion, respectively, was offset by higher oil and input prices as well as the devaluation of the peso

All subsidiaries posted growth except for airline as commercial passenger flights continue to be limited given the reimposition of stricter lockdown measures.

Excluding airline, JG Summit’s nine-month earnings and core net income grew 22 percent and 36 percent, respectively, to P12.3 billion and P14.5 billion.

JG Summit booked a foreign exchange loss of P3.9 billion as a result of a weaker peso.

Company president and CEO Lance Gokongwei, however, is confident that a shift to more relaxed quarantine restrictions as well as higher inoculation rates will put JG Summit back on track to recovery in 2022 and revert to pre-COVID levels in 2023.

The post Inflation surge, forex losses rattle Gokongwei holding firm’s Q3 performance first appeared on Bilyonaryo Business News.



Inflation surge, forex losses rattle Gokongwei holding firm’s Q3 performance
Source: Filipino Daily Inquirer