Consolidated revenues grew by 17% YoY to Php 122.90 billion from last year’s Php105.19 billion as all subsidiaries posted decent revenue growth. Our equity income from associates and joint ventures, however, declined 20% from Php 2.77 billion to Php 2.22 billion due to the lower income take-up from Singapore-based affiliate, United Industrial Corp. Ltd. (UIC). JG Summit owns a 36.09% stake in UIC. Consolidated EBITDA (operating income adding back depreciation and amortization) for the year dropped 11% to Php25.20 billion from last year’s Php28.27 billion due mainly to the high commodity prices which eroded margins for our units, Universal Robina Corporation (URC) and Cebu Air, Inc. (Cebu Pacific).
The Group’s net financing costs and other charges (net of interest income) decreased by 42% to Php2.04 billion from Php3.51 billion as the level of borrowings declined after the pay down of a syndicated loan from the cash proceeds of the PLDT shares option sale, and higher average value of the company’s investment portfolio for the year. Mark-to-market valuation of financial assets for the year amounted to a loss of Php655 million versus a gain of Php1.70 billion for the same period in 2010. This was brought about by the combined effects of the lower market value of some of its financial assets and the fuel hedges of Cebu Air Inc., arising from volatility in global financial and commodity markets. The Group also recognized foreign exchange losses of Php241 million against forex gains reported last year of Php1.94 billion, as the Philippine peso was much stronger in 2010 as compared to 2011.
As of end December 2011, the Group’s balance sheet was strong, with a current ratio of 1.55:1, gearing ratio of 0.50:1 and net debt to equity of 0.16:1. Consolidated assets reached Php3 14.86 billion as of end December 2011 from Php326.32 billion as of end December 2010. Total equity (including minority interest), grew to Php180.57 billion in 2011 from Php149.46 billion at the end of 2010, while Stockholder’s equity increased to Php 141.36 billion as compared to Php 117.57 billion in 2010. The Group’s capital expenditure in 2011 amounted to Php29.39 billion, 46% increase from last year’s capex of Php20.13 billion, as a result of the increase in Cebu Pacific’s aircraft fleet, land-banking activities of Robinsons Land, as well as the on-going construction of JG Summit Petrochemical’s naphtha cracker plant. Book value per share rose to Php20.97 in 2011 from Php17.44 in 2010.
About JG Summit Holdings, Inc.
JG Summit Holdings, Inc. (JGS), which is controlled by the Gokongwei Family, was incorporated in November 1990 as the holding company for a group of companies with substantial business interests in branded consumer foods, agro-industrial and commodity food products, property development and hotel management, telecommunications, air transportation, petrochemicals, and international capital and financial services,. In addition, JGS has business interests in other sectors, including power generation and insurance.
