Cebu Pacific remains a headache for Lance Gokongwei, sapping JG Summit’s bottomline
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Cebu Pacific remains a headache for Lance Gokongwei, sapping JG Summit’s bottomline

Gokongwei-led JG Summit Holdings Inc. swung to a core net loss of P689 million in the first quarter, weighed down by the woes of its airline unit as well as forex losses.

In the same period last year, the diversified conglomerate posted a core net income of P232 million.

Coupled with mark-to-market losses and a weakening peso, JG Summit ended March with a net loss of P2.8 billion.

“While the reopening of the economy fueled significant improvements in topline and substantially trimmed Cebu Air Inc.’s core net losses, unprecedented volatility in oil and input prices weighed on the group’s margins, particularly in JG Summit Olefins Corp.,” JG Summit said.

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Financing costs and other charges jumped by 13.6 percent to P2.2 billion due to higher interest expense on long-term and short-term debts and trust receipts payables.

Market valuation losses recognized from financial assets and derivative instruments amounted to P2.1 billion, reversing the market valuation gain of P64 million.

JG Summit booked net foreign exchange losses of P684 million, more than double the P256 million recorded in the same period last year due to the sharp depreciation of Philippine peso vis-à-vis the US dollar.

 

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