Manila: JG Summit Holdings, Inc., the Gokongwei family's listed holding company, is banking on the expected easing of inflation to drive revenue growth this year. JG Summit reported Thursday that its revenues grew 11 percent, reaching PHP379.7 billion in 2024, with core profits increasing by 29 percent to PHP24.9 billion year-on-year.
According to Philippines News Agency, the company attributed its strong bottom line last year to a PHP7.9-billion gain following the merger of its banking subsidiary, Robinsons Bank, with Bank of the Philippine Islands (BPI) on January 1, 2024. This gain offset losses in other business segments, such as lower profits in its petrochemical unit JG Summit Olefins Corp. (JGSOC) due to weak polymer margins, higher costs from Cebu Air, Inc. for fleet investments, and reduced sugar profits in its food and beverage subsidiary, Universal Robina Corp. (URC).
JG Summit president and CEO Lance Gokongwei stated, "We have successfully navigated 2024 with mixed results coming from our different units and investments." He added that the company's key priority in 2025 will be to accelerate overall topline growth, driven by an expected rebound in consumer sentiment as inflation eases.
URC contributed the largest share to JG Summit's topline in 2024, with revenues amounting to PHP161.9 billion, a 3 percent increase year-on-year, backed by strong performance in its overseas division. Meanwhile, Cebu Air's revenues in 2024 expanded by 16 percent to PHP104.9 billion, supported by an 18-percent increase in passenger numbers as average fares in the second half of 2024 decreased by 3 percent year-on-year.
The company's real estate business, Robinsons Land Corp. (RLC), experienced revenue growth of PHP40.1 billion, and JGSOC's revenues jumped 33 percent to PHP50.4 billion. However, JGSOC faced challenges with polymer and olefins product margins, which significantly impacted profitability. Despite cushioning from the aromatics, butadiene, and LPG trading sectors, EBITDA losses widened to PHP6.2 billion, and net losses increased to PHP16.5 billion. Notably, JGSOC's plants have been under an indefinite commercial shutdown since January 2025.
Gokongwei remains optimistic about JG Summit's initiatives launched in the previous year, which include affordable product offerings from URC, new aircraft deliveries boosting Cebu Pacific's capacity, and completed projects strengthening RLC's investment portfolio. He expressed optimism about the trajectory of ecosystem plays and partnerships, such as GoTyme, the company's digital banking arm, and DHL Summit Solutions, which is expanding into new customer bases outside the group.
Nevertheless, Gokongwei acknowledged the ongoing challenges faced by JGSOC due to the global slowdown in the petrochemical industry.
