JG Summit Holdings, Inc. (JGS), the flagship of the Gokongwei Group, reported a turnaround with consolidated attributable net income surging to P5.1 billion last year from a net loss of P468 million in 2020.

In a disclosure to the Philippine Stock Exchange, the firm said it remains on track to full recovery from the negative impacts of the COVID-19 pandemic.

Excluding its airline, Cebu Air, Inc. (CEB), which continued to deal with heightened travel restrictions, JGS saw its 2021 consolidated revenues exceed pre- pandemic levels by 7 percent while its core net income already reached 96 percent of its 2019 level.

Including CEB’s performance, JGS’ total revenues grew 13 percent year-on-year (YoY) to P230.6 billion as the partial reopening of the economy benefited its food, real estate, petrochemicals, and banking segments.

JGS’ total consolidated core net income rose 672 percent YoY to P3.5 billion, driven by the 46 percent YoY growth of RLC’s profits as well as larger contributions from its core investments in Manila Electric Company (Meralco), Singapore Land Group (SLG), and PLDT.

However, there were also headwinds from elevated fuel prices, high inflation, and currency depreciation, which led to narrower operating margins for Universal Robina Corporation (URC), JG Summit Olefins Corporation (JGSOC), and CEB.

Nonetheless, URC’s gain on the sale of its Oceania business and the benefits of CREATE law boosted the group’s total net income.

The firm’s performance was boosted by various successful transactions across the group in 2021: JGS’ sale of its Global Business Power stake to Meralco; URC’s Oceania divestment and its acquisition of Munchy Food Industries; and RLC’s REIT listing.

“For the full year of 2021, the business experienced a mixed set of results. Our food and banking segments continued to be stable while the mobility restrictions and quarantine measures still affected our real estate (specifically malls) and airline businesses,” said JG Summit President & CEO Lance Gokongwei.

He added that, “It is noteworthy though that we have seen sequential recovery quarter on quarter as the vaccination rollout accelerated towards the second half of 2021.”

While 2022 started with a surge given the rapid spread of the Omicron variant, Gokongwei said “we remain hopeful that the more relaxed alert level after this surge will positively impact the demand for our products and services.”

“We are cautious though that headwinds continue to affect us with the current volatility in oil prices, rising input costs and peso devaluation will result to margin pressures. To mitigate this, we will continue to be proactive in managing pricing and product mix while simultaneously putting in place productivity initiatives across our businesses,” he noted.

In addition, Gokongwei said “we have recalibrated our long-term objectives, goals, strategy and measures and we are now actively implementing alignment to further enhance value creation through our ecosystem to ensure we emerge as a stronger business post-COVID and the years to come.”

URC’s revenues excluding Oceania grew 3 percent to P117.0 billion as total net income ended at P23.3 billion, up 117 percent.

RLC’s FY21 revenues grew 29 percent to P35.6 billion as net income grew 53 percent YoY to P8.1 billion.

As expected, CEB’s revenues fell 30 percent YoY given high base effects considering the pandemic started late in the first quarter of 2020. It ended with a net loss of P24.9 billion.

JGSOC’s 2021 revenues grew 90 percent to P40.3 billion, driven by strong volumes and higher average selling prices (ASP), in addition to fresh contributions from its LPG trading business and the newly commissioned Aromatics Extraction Unit.

Robinsons Bank’s 2021 revenues remained stable at P9.3 billion.