JG Summit, AGI post higher earnings in January-September period

MANILA, Philippines — Two of the country’s biggest conglomerates reported strong growth in the first nine months of the year.

JG Summit Holdings Inc. (JGS), the Gokongwei-led conglomerate, posted a net income of P15 billion during the nine-month period, a marked turnaround from the P900 million loss in the same period last year.

Consolidated revenues rose 16 percent to P251.3 billion.

The turnaround in JG Summit’s air transport operations plus margin gains in its real estate and food businesses further boosted the company’s topline performance, outweighing the absence of the P3.2 billion gains from the sale of Meralco shares last year and a longer petrochemicals shutdown this year,” the company said.

JG Summit president and CEO Lance Gokongwei said the company sustained the topline growth and margin expansion with good operating results in the third quarter from its different business units.

“We, however, remain cognizant of both macro and industry challenges that our business units continue to face, especially with the recent volatility in fuel costs and FX rates, and elevated borrowing costs. With this in mind, we carry through with our initiatives to improve efficiency and profitability, while pursuing growth,” Gokongwei said.

Andrew Tan-led Alliance Global Group Inc. (AGI), meanwhile, registered an 18 percent increase in net income during the nine-month period to hit P20.1 billion.

This was on the back of a 17 percent growth in consolidated revenues during the period, bringing the level to P150.4 billion from P128.4 billion the year before.

Attributable profit ended higher by nine percent to P12.9 billion.

“This was driven by the continued rise in consumer spending and improved economic activity despite prevailing macroeconomic headwinds,” Alliance Global said.

In the third quarter of 2023, consolidated revenues expanded by 12 percent year-on-year to P51.3 billion, while net income went up by 16 percent year-on-year to P6 billion. Attributable profit stood at P3.7 billion.

“The Alliance Global Group has sustained its strong financial and operating performance in the first nine months of the year even in the wake of persistent domestic and global economic challenges,” said Kevin Tan, chief executive officer of AGI.