JG Summit Holdings Inc. reported that its consolidated net income surged 1,332 percent to P8.55 billion last year, a turnaround from the net loss of P690 million in 2008 as it recognized gains in mark-to-market valuation from a loss in the previous year.

The firm said in a disclosure to the Philippine Stock Exchange Tuesday that valuation gains came as financial markets improved.

There was a turnaround as the Group recognized a gain from market valuation from financial investments of P2.33 billion for 2009 from a loss of P7.14 billion in 2008.

Core earnings before taxes for the year ended December 31, 2009, excluding the effects of foreign exchange and mark-to-market gains or losses, increased 16.5 percent from P9.16 billion to P10.68 billion.

Consolidated revenues grew by 9 percent to P107.96 billion from the previous year's P99.07 billion as most of JG Summit’s subsidiaries posted revenue growth.

On the other hand, consolidated cost of sales and services barely changed from P64.23 billion in 2008 to P64.40 billion last year. As a result, consolidated gross income further increased by 25.0 percent.

While consolidated operating expenses increased by 20.4 percent as a result of a higher level of business activity of food, telecommunications and airline businesses, consolidated operating income increased by a higher 34.6 percent due to better operating efficiencies that led to improved margins in 2009.

Consolidated EBITDA (operating income adding back depreciation and amortization) for the period, amounted to P27.04 billion, a 28 percent improvement from 2008's P21.16 billion due to the strong performance of its subsidiaries.

The Group's financing costs and other charges (net of interest income) incurred in 2009 increased by 34.9 percent from P3.52 billion in 2008 to P4.75 billion due to lower interest income this year partly offset by lower exchange rate.