MANILA, Philippines - JG Summit Holdings Inc., the investment vehicle of the family of taipan John Gokongwei, said it expects to receive P8 billion in recurring income from core operating businesses and investments by 2012.
On the sidelines of the company’s annual stockholders meeting yesterday, JG Summit president and chief operating officer Lance Gokongwei said the holding firm will continue to post strong growth and cash-generating abilities.
“We are confident that your company will be in the forefront to show notable earnings performance,” said Gokongwei, as he pointed out that the company has even increased its capital spending this year.
JG Summit is expected to receive cash dividends amounting to $58 million from food and beverage unit Universal Robina Corp. (URC), $28 million from budget carrier Cebu Air, $21 million from Robinsons Land Corp. (RLC), and $12 million from United Industrial Corp. Ltd.
Gokongwei said the company is also expected to receive $74 million in cash dividends from its eight percent investment in Philippine Long Distance Telephone Co. (PLDT).
Other companies under JG Summit’s wings are Digital Telecommunications Philippines Inc. (telecommunications), JG Summit Petrochemicals Corp. (petrochemicals), and Robinsons Savings Bank (banking services).
URC is one of the leading pan-Asian food and beverage companies and is also a major player in agro-industrial and commodity businesses in the Philippines. It is known for manufacturing and distributing high-performance products such as Chippy, Nova and other snack foods under the Jack n’ Jill brand, Hunt’s tomato-based products, and C2 instant drinks.
RLC, on the other hand, is one of the country’s leading real estate developers in terms of revenues, number of projects and total project size.
Although the country’s telecommunications market continues to be largely dominated by Smart Communications and Globe Telecom, Sun Cellular (the wireless mobile brand of Digitel Mobile Phils. Inc.) has made some headway by increasing its subscriber market share from 12 percent as at end-2008 to 16 percent as at end-2010.
Last month, JG Summit announced its plan to relinquish control of Digitel to PLDT in a deal valued at P69.2 billion. In exchange, the Gokongwei-owned holding company will acquire a 12.8 percent stake in PLDT, equivalent to one board seat on the 13-member board.
Cebu Air’s Cebu Pacific, meanwhile, maintained its lead in the domestic passenger market, flying 8.93 million passengers last year or an increase of 15 percent from the 2009 level. This gave the airline a 48 percent share of the domestic market. The carrier has been successful in its low-fare, great-value strategy.
On the other hand, JG Summit Petrochemicals Corp. has dominated the market it serves, which are the small, medium and large plastic converters in the Philippines. The company has commenced construction of a naphtha cracker plant on the site of its existing complex in Batangas.
The project will be the first naphtha cracker plant in the Philippines, which would complete the integration of the domestic petrochemical industry, specifically in olefins and poly-olefins.
Based on assets, Robinsons Savings Bank (RSB) ranked among the top 10 savings banks in the thrift bank sector as of end-September 2010. RSB currently has 56 branches and a nationwide network of 102 ATMS under the Bancnet consortium.