Conglomerates JG Summit Holdings Inc., Alliance Global Group Inc. and DMCI Holdings Inc. turned in mixed income results in the first half after cost pressures weighed on revenues.
JG Summit of the Gokongwei group said net income climbed 79 percent in the first six months to P17.6 billion from a year ago while AGI, the investment holding company of billionaire Andrew Tan, registered a flat profit of P12.5 billion.
DMCI Holdings Inc. of the Consunji family booked P6.7 billion in consolidated income in the first half of 2019, down 22 percent from P8.6 billion in the previous year.
JG Summit said the favorable first-half results came on the back of a 10-percent increase in revenues and mark-to-market and forex gains amid the favorable macroeconomic environment.
“We are pleased to report a record P17.6-billion net income in the first half. With inflation easing and a generally favorable macroeconomic environment this year, we continue to experience strong growth from our food, airline and real estate businesses. Our exposure to a diverse mix of core businesses and investments has certainly helped us achieve such earnings momentum. We hope to sustain this growth for the balance of the year,” JG Summit said.
Meanwhile, AGI said all major subsidiaries in property, liquor, gaming and quick service restaurant businesses contributed to the 15-percent growth in revenues to P82.8 billion in the first six months.
“We believe the group’s strong topline performance was achieved on the back of a highly favorable domestic economy which cushioned the impact of some challenges in the global market,” AGI chief executive Kevin Tan said.
Tan said the increasing cost pressures, some brought about by the very competitive environment, had impacted on margins.
“Despite this, we remain confident that the collective growth strategies we have put in place – largely through product and market diversification, international pursuits for our spirits business and our ongoing expansion projects – are sound and will soon bear fruit,” said Tan.
DMCI Holdings said first-half earnings slowed down because of the weak contributions of Semirara Mining and Power Corporation, D.M. Consunji Inc. and DMCI Mining.
“We had a tough first-half because of the lower average selling price of coal, higher replacement power costs, provisions for project cost overruns and lower average price for our lower grade nickel,” said DMCI Holdings chairman and president Isidro Consunji.
“But we hope to curb the profit decline in the succeeding quarters,” he said.