JG Summit profits up despite mixed unit performance

JG Summit Holdings Inc. (JGS) grew its net income by 10 percent to P22 billion in 2024, supported by merger gains and steady revenue growth across its businesses, despite headwinds in its petrochemical and airline segments.

The Gokongwei Family-led conglomerate reported a 29 percent increase in core net income to P24.9 billion, driven by an 11 percent rise in revenues to P379.7 billion and a P7.9-billion gain from the merger of Robinsons Bank with Bank of the Philippine Islands (BPI).

“We have successfully navigated 2024 with mixed results from our different units and investments. In 2025, our key priority will be to accelerate topline growth as consumer sentiment rebounds with easing inflation,” JGS president and CEO Lance Gokongwei said.

Strong demand in travel and leisure

Revenue growth was fueled by strong demand in travel and leisure, higher food and beverage sales, and the resumption of JGS’ petrochemical plant operations.

However, challenges such as weak polymer margins, higher airline fleet expenses and a sugar profit correction weighed on overall performance.

Gokongwei said he remains optimistic about the company’s digital banking arm, GoTyme, and its logistics venture, DHL Summit Solutions, despite ongoing struggles in its petrochemical business.

On the financial front, JGS maintained a debt-to-equity ratio of 0.67 and net gearing at 0.54. Parent company dividends rose 10 percent to P17.3 billion, while net debt climbed 17 percent to P66.6 billion, mainly due to capital infusion into its petrochemical unit, JG Summit Olefins Corp., amid industry challenges.

Low sugar profits

Universal Robina Corp. posted a 3 percent revenue growth to P161.9 billion, but net income fell 4 percent to P11.7 billion due to lower sugar profits. Robinsons Land Corp. saw a 3 percent revenue increase to P40.1 billion, while net income was flat at P12.5 billion.

Cebu Pacific’s revenues rose 16 percent to P104.9 billion, but higher fleet costs dragged net income down 32 percent to P5.4 billion.

Meanwhile, JG Summit Olefins posted a 33 percent revenue growth to P50.4 billion, but continued to struggle with weak margins, widening net losses to P16.5 billion.

JG Summit’s stake in Meralco delivered a 21 percent increase in net income to P11.9 billion, supported by record electricity sales.

Singapore Land Group saw a 31 percent rise in net income from improved hotel and rental operations. BPI dividends reached P746 million, offsetting a decline in PLDT dividends.