Big Business getting more profitable

Published on Monday, 03 December 2012 20:48

Written by Emeterio Sd. Perez / By The Rule

IF the common folk were to be asked if they felt or experience any positive change in their life in the third quarter—that is, from July to September—because of the 7.1-percent economic growth during the period, most of them would probably say none. By the Rule can only make this speculation since it has no basis to make a conclusion.

The question then is, if the man on the street, particularly the worker, did not benefit—or did not feel they did—from such high growth in gross domestic product, then who did?  If it is Big Business, then was it the great economic booster or the sector that has greatly benefited from it? To answer the question, By the Rule reviewed the financial performance of certain listed but family-controlled holding companies included in the main index based on consolidated quarterly reports.

Ayala Corp. (AC) reported net income of P4.635 billion in the third quarter of 2012, up 19.736 percent from P3.871 billion in the same period last year. In the first nine months, its profit increased 22.290 percent to P14.555 billion from P11.902 billion. These profits resulted from revenues which climbed 15.108 percent to P31.497 billion in the third quarter of 2012 from P27.363 billion in the same period in 2011. In the first nine months, the holding company reported revenues of P91.139 billion, up 15.985 percent from 78.578 billion. These profits boosted AC’s retained earnings to P83.399 billion as of September 30.  Of its accumulated retained earnings, AC distributed P2 dividend, or 0.4796 percent of AC’s 30-day low of P417.20 and 0.4098 percent of the stock’s month’s high of P488, on July 12. Mermac Inc., the unlisted holding company of the Zobel family, is AC’s majority stockholder owning 303.689 million, or 51.1654 percent of outstanding common shares. Its partner, Mitsubishi Corp. of Japan, owns 63.078 million shares or 10.6273 percent.

ENJOY GOOD LIFE + INVESTMENT, CLICK HERE  

Net income of Cebu-based Aboitiz Equity Ventures Inc. (AEV) increased 6.992 percent to P7.789 billion in the third quarter from P7.280 billion in the same period last year. This resulted from revenues of P20.447 billion, up 10.185 percent from P18.557 billion. In the first nine months, AEV reported net profit of P22.696 billion, up 12.876 percent from P20.107 billion, on revenues which climbed 11.656 percent to P60.791billion from P54.445 billion. As of September 30, 2012, it had retained earnings of P70.351 billion, which is 12.354 times it paid up capital of P5.694 billion. It gave out P1.58 dividend on April 3, 2012, equivalent to 3.354 percent of 30-day low of P47.10 and 3.176 percent of 30-day high of P49.75. The Aboitizes controls AEV through Aboitiz and Co. which owns 2.736 billion AEV shares, or 49.5412 percent; Aboitiz Foundation Inc., 1.414 million AEV shares, or 0.0256 percent; Aboitiz Jebsen Co., 316,081 AEV shares, or 0.0057 percent; and Metaphil Inc., 431 AEV shares. The Aboitiz group’s employees own 11.896 million AEV shares, or 0.2151 percent, through eight retirement funds.

In the third quarter, net profit of Alliance Global Group Inc. (AGI) soared 79.503 percent to P5.053 billion from P2.815 billion in the same period last year, on revenues of P27.012 billion, up 71.255 percent from P15.773 billion. Its net profits in the three quarters increased 9.902 percent to P13.463 billion from P12.250 billion. As of September 30, its retained earnings amounted to P36.738 billion after distributing dividend of P0.36 equivalent to 2.553 percent of the stock’s 30-day low of P14.10 and 2.169 percent of 30-day high of P16.60. Alliance Global is the flagship of businessman Andrew Tan, who owns a total of 5.651 billion AGI shares, or 54.930 percent, through the unlisted family-owned Andresons Group Inc., which, in turn, directly owns 3.995 billion AGI shares, or 38.412 percent, and Yorkshire Holdings Inc., which holds through various units 1.673 billion AGI shares, or 15.41 percent. Three other companies hold 122.964 million AGI shares, or 1.10 percent.

JG Summit Holdings Inc. more than doubled its net income to P4.689 billion in the third quarter from P2.858 billion in the same period last year. Its net profit in the first nine months increased to P15.472 billion from P11.897 billion. Its profits resulted from revenues of P32.130 billion in the third quarter, up from P30.357 billion and P101.296 billion in the first nine months, up from P91.476 billion last year. As of September 30, it had retained earnings of P119.607 billion, which is 8.491 times its paid-up capital of P14.086 billion.

JG Summit distributed P0.16 dividend per common share on August 13, 2012, which is equivalent to 0.492 percent of the stock’s 30-day low of P32.55 and 0.416 percent of 30-day high of P38.50. JG Summit is the listed holding company of the Gokongweis who control through various companies and associates a total of 4.652 billion JGS shares, or 68.45 percent.

Lopez Holdings Inc.’s net profit in the third quarter fell to P1.008 billion from P2.945 billion in the same period last year despite increase in its revenues to P8.765 billion from P7.345 billion. In the first nine months, its net profit went up to P6.842 billion from P4.489 billion in the same period last year, on revenues which increased to P24.017 billion from P21.229 billion. As of September 30, its retained earnings amounted to P44.805 billion, which is 9.774 times its capital of P4.584 billion. On June 15, it distributed P0.10 dividend, equivalent to 1.912 percent of Lopez Holdings’ 30-day low of P5.23 and 1.475 percent of 30-day high of P6.78. Lopez Holdings is only one of the Lopez-controlled listed companies. Its principal, or majority stockholder, is the unlisted Lopez Inc., which owns 2.420 billion shares, or 52.7996 percent.

Net income of SM Investments Corp. (SMIC), the listed holding company of businessman Henry Sy Sr. and his family, went up to P7.604 billion in the third quarter of 2012 from P6.673 billion in the same period last year on revenues of P52.676 billion, up from P47.142 billion. In last three quarter, SMIC’s net income climbed to P22.917 billion from P20.059 billion which resulted from revenues of P157.931 billion, up from P139.223 billion.

As of September 30, its retained earnings totaled P120.919 billion of which it has appropriated P5 billion for projects. On June 21, 2012, it gave out dividend of P10.40 per share, or 1.323 percent of SMIC’s 30-day low of P786 and 1.186 percent of 30-day high of P877. The Sys control either directly or indirectly 379.420 million SMIC shares, or 61.79 percent.