Gokongwei-led JG Summit Holdings Inc. (JGS), one of the Philippines’ largest and most diversified conglomerates, reported a 29-percent year-on-year growth in core profits to ₱24.9 billion in 2024.
In a disclosure to the Philippine Stock Exchange, the firm said this came as its revenues expanded 11 percent and was further boosted by the realized gains from the merger between Robinsons Bank and the Ayala Group’s Bank of the Philippine Islands (BPI).
Incorporating non-core items such as mark-to-market and foreign exchange movements as well as losses from unplanned shutdowns and discontinued operations, net profits closed at ₱22 billion, 10-percent higher than in 2023.
JG Summit’s consolidated topline for the full year of 2024 reached ₱379.7 billion, driven by robust demand for travel and leisure, improvement in sales volumes for the food and beverage business, and the resumption of its petrochemical plant operations following a commercial shutdown in the previous year.
The company’s core net income was uplifted by the ₱7.9-billion gain recognized after the merger of its banking subsidiary with BPI became effective last Jan. 1, 2024.
The gain more than offset specific headwinds in the conglomerate’s other businesses, namely the unfavorable polymer margins in its petrochemical business, the additional depreciation and interest expense from its airline’s fleet investments, and the sugar profit correction in its food and beverage arm.
JG Summit said it received 10-percent more dividends in 2024, totaling ₱17.3 billion. The parent’s net debt of ₱66.6 billion rose by 17 percent versus end-2023, as it borrowed additional funds for the ₱17.1-billion capital infusion into JG Summit Olefins Corp. (JGSOC) in the fourth quarter of 2024.
“Such infusion was necessary to help JGSOC meet its maturing obligations and debt covenant amid the petrochemical cycle trough,” the firm said.
JG Summit President and CEO Lance Y. Gokongwei said, “We have successfully navigated 2024 with mixed results from our different units and investments. Coming into 2025, our key priority will be to accelerate the overall topline growth of our business units, given the expected rebound in consumer sentiment as inflation eases.
“We expect that the initiatives that were started in 2024 will start to bear fruit and gain momentum—namely, the value for money offerings in URC [Universal Robina Corp.], the additional aircraft deliveries that added capacity for Cebu Pacific, and the finished projects for RLC’s [Robinsons Land Corp.] investment portfolio.”
He noted that, “We are also very happy and optimistic on the trajectory of our ecosystem plays and partnerships—GoTyme, our digital banking arm which continues to acquire new accountholders, and DHL Summit Solutions, our supply chain and logistics play which has started venturing into new customers outside the group.
“Challenges in the portfolio continue to remain, however, specifically on JGSOC, with the prolonged global downcycle in the petrochemicals industry.”
URC’s core and net income declined by five percent and four percent year-on-year, respectively, to ₱11.3 billion and ₱11.7 billion. RLC’s contribution to JG Summit’s consolidated core and net income ended flat year-on-year, at ₱12.5 billion.
Cebu Air Inc. saw a decline in core and net profits by 31 percent and 32 percent, to ₱5.3 billion and ₱5.4 billion, respectively. JGSOC’s earnings before interest, taxes, depreciation, and amortization (EBITDA) losses widened to ₱6.2 billion, while net losses widened to ₱16.5 billion.
JG Summit’s share in the net income of Manuel V. Pangilinan-led Manila Electric Co. (Meralco) jumped 21 percent year-on-year to ₱11.9 billion. Singapore Land Group saw improved hotel operations plus increased rental rates and occupancy rates in its property investments, leading JG Summit’s equity share in 2024 net income to jump 31 percent year-on-year.
Regular dividends from also Pangilinan-led PLDT Inc. saw a ₱2-per-share increase to ₱96 a share in 2024. However, this was weighed down by the absence of the special dividends declared in 2023, leading to an 11-percent decline in dividends received from PLDT year-on-year.
Offsetting the decline in PLDT dividends were the first set of dividends received by JG Summit from BPI after the merger effectivity in January 2024, amounting to ₱746 million.