JG Summit Q1 net income down 19% on coronavirus concerns

JG Summit Holdings Inc. (JGS) reported a 19% decline in its core net income for the first quarter, as its businesses -- such as Cebu Pacific -- were hit by quarantine measures to curb the spread of the coronavirus disease 2019 (COVID-19).

In a regulatory filing on Thursday, JGS said its core net income fell to P4.3 billion during the quarter. Revenues also fell 10% to P67.9 billion.

"Coming from a strong performance in 2019, the unexpected turn of events driven by the evolving global pandemic started to have a material impact to the JG Summit group in the first quarter of 2020," said JG Summit president and chief executive officer Lance Gokongwei.

"This includes travel restrictions early in the year that affected our airline, Cebu Pacific, and the stricter social distancing measures mid-March has further resulted in the closure of RLC's malls and hotels, disruption in URC's supply chain and delays in our Petrochemical plant expansion," he elaborated.

Metro Manila, along with several "high-risk areas," has been on lockdown since March 17. The enhanced community quarantine (ECQ) has since been extended several times to last until May 31.

Flights of the carrier Cebu Pacific have been canceled throughout the duration of the ECQ, with the airline posting a P1.2-billion net loss during the quarter.

Robinsons Land Corp. (RLC) reported an 82% increase in its net income due to lower operating expenses and foreign exchange losses, while Robinsons Bank Corp. registered a 722% increase in net income due to loan growth.

Meanwhile, Universal Robina Corp. (URC) saw a 35% decline in its net income due to high foreign exchange losses and JG Petrochemicals Group posted a net loss of P1.1 billion.

"We are now living in an extraordinary period where lives have been heavily disrupted," said Gokongwei.

"In response to this situation, our group remains focused on employee health and safety, operations and supply chain continuity of our key businesses, implementing measures to manage cash, costs and liquidity, and helping the communities," he elaborated.

Moving forward, Gokongwei said the company will bank on the diversity of the company's portfolio to spur its growth.

"With the strength of our balance sheet and the diversity of our portfolio, we expect to weather the COVID-19 situation and we hope to emerge stronger," he said.—AOL, GMA News