MANILA, Philippines — Double-digit revenue expansion and bank merger gains powered conglomerate JG Summit Holdings Inc. to a strong profit growth in the nine months ending September.
JG Summit finished the first three quarters with a 16-percent jump in net income to P17.9 billion as core profits surged by 39 percent to P20.3 billion.
The earnings growth came on the back of a double-digit topline expansion coupled with the gains it realized from merging Robinsons Bank with Ayala-led Bank of the Philippine Islands.
JG Summit managed to deliver a topline growth of 10 percent to P277 billion during the nine-month period despite inflation headwinds persisting into the third quarter.
Higher revenues for the three quarters were fueled by a healthy demand for travel and leisure activities, a higher preference for value food and beverage products as well as increased utilization rates in the group’s petrochemical plants.
“While the overall macro environment is expected to rebound with the easing inflation, most of our businesses are still affected by the weaker consumer sentiment that has dampened demand for products and services,” JG Summit president and CEO Lance Gokongwei said.
“We are seeing the propensity of consumers towards value food and beverage products, the seasonally weaker quarter for travel and the prolonged industry downcycle for petrochemicals impacting our latest results,” he said.
However, Gokongwei said that the group is expecting a better fourth quarter.
“This will also establish a stronger base as we pursue initiatives to sequentially drive better topline growth and margins across our operating units,” he said.
In terms of its business units, JG Summit said that Universal Robina Corp. (URC) is slated to commission its new Malvar mega plant in early 2025.
URC will likewise focus on sustaining its value for money initiatives, investing behind increased promotional intensity and brand building, and offering accessible choices to consumers across price points and channels.
Petrochemicals unit JG Summit Olefins Corp., meanwhile, has been undertaking transformation initiatives that continue to support the business amidst the global oversupply.
The initiatives include using targeted account management to serve key customers, being more selective with its export markets, fortifying governance over its pricing process and launching best-in-class reliability programs.