JG Summit earnings rise 29% to P24.9 billion

MANILA, Philippines — Conglomerate JG Summit Holdings Inc. saw core earnings climb by 29 percent to P24.9 billion in 2024 following a double-digit expansion in revenues, coupled with realized gains from the merger between Robinsons Bank and Bank of the Philippine Islands (BPI).

JG Summit’s top line for 2024 jumped by 11 percent year-on-year to P379.7 billion, fueled by robust demand for travel and leisure, improvement in sales volumes for the food and beverage business as well as the resumption of its petrochemical plant operations coming from a commercial shutdown in the previous year.

Core net income of the company got a boost from the P7.9-billion gain recognized after the merger of its banking subsidiary with BPI became effective last year.

JG Summit said 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 as well as the sugar profit correction in its food and beverage arm.

Incorporating non-core items such as mark-to-market and foreign exchange movements as well as losses from unplanned shutdowns and discontinued operations, the company’s net profit grew by 10 percent year-on-year to P22 billion.

JG Summit president and CEO Lance Gokongwei said the group’s key priority coming into 2025 is to accelerate the overall top line growth of its business units due to the expected rebound in consumer sentiment as inflation eases.

“We have successfully navigated 2024 with mixed results coming from our different units and investments. 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, the additional aircraft deliveries that added capacity for Cebu Pacific and the finished projects for RLC’s investment portfolio,” Gokongwei said.

“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,” he said.

Gokongwei said that challenges in the portfolio, however, continue to remain, specifically on JG Summit Olefins Corp. (JGSOC), with the prolonged global downcycle in the petrochemicals industry.

JGSOC’s plants have been under an indefinite commercial shutdown since January 2025. The shutdown was done in order to mitigate the losses amid the current landscape.

JG Summit’s food business, through URC, continues to drive initiatives to grow volumes and increase market shares, focusing on better value for both affordability and through its innovation pipeline.

It will also increase spending in advertising and promotions to drive the positive momentum into 2025.

Cebu Pacific, meanwhile, posted a decline in net income to P5.4 billion in 2024 from P7.9 billion in 2023 due to increased fleet and financing cost.

Revenues of the airline, however, soared by 16 percent to P104.9 billion, driven by its passenger business.

“We have always been optimistic about the potential of Philippine aviation, driven by the country’s strong economic, geographic and demographic advantages. Strategic investments in our fleet and hubs have been key to Cebu Pacific’s growth,” Cebu Pacific chief finance officer Mark Cezar said.

“By capitalizing on these opportunities early, we’ve positioned ourselves as leaders in both the domestic and international markets. This solid foundation gives us great confidence as we look ahead to 2025, where we anticipate continuing our rapid growth and improving both operational and financial performance,” he said.