JG Summit Holdings, Inc. (JGS), one of the Philippines’ largest conglomerates, reported a remarkable 29% year-on-year (YoY) increase in core profits for 2024, reaching Php24.9 billion. This growth was supported by an 11% revenue expansion and a Php7.9-billion gain from the merger between Robinsons Bank and Bank of the Philippine Islands (BPI), effective January 1, 2024.
FY24 Financial Highlights
Consolidated Revenue: JGS achieved a consolidated topline of Php379.7 billion in FY24, driven by:
- Resurgent demand for travel and leisure.
- Higher sales volumes in its food and beverage segment.
- The resumption of petrochemical operations following a shutdown in the previous year.
Despite challenges such as unfavorable polymer margins, additional depreciation and interest expenses from fleet investments in its airline business, and sugar profit corrections in the food segment, core net income surged. Non-core items, including mark-to-market adjustments and forex movements, led to a net profit of Php22.0 billion, 10% higher than FY23.
Robust Financial Position
JGS maintained a strong financial foundation in 2024 with:
- Debt-to-equity and net gearing ratios at 0.67 and 0.54, respectively.
- Parent company dividends are up 10% to Php17.3 billion.
- A 17% rise in parent net debt to Php66.6 billion due to additional borrowing for a Php17.1 billion capital infusion into JG Summit Olefins Corporation (JGSOC).
Segment Performance
Universal Robina Corporation (URC): URC’s revenue grew 3% YoY to Php161.9 billion, fueled by international division strength. Core and net incomes declined marginally due to sugar profit corrections and discontinued operations in China.
Robinsons Land Corporation (RLC): The real estate arm delivered a 3% YoY revenue increase to Php40.1 billion. Its investment portfolio grew 14%, offsetting lower residential sales. RLC also introduced Opus Mall and expanded its REIT with 13 new assets.
Cebu Air, Inc. (CEB): Revenue rose 16% to Php104.9 billion, reflecting increased passenger volumes and fleet growth. However, core and net profits declined due to higher depreciation and interest expenses.
JG Summit Olefins Corporation (JGSOC): Despite a 33% YoY revenue increase to Php50.4 billion, JGSOC faced persistent profitability challenges due to weak polymer margins. Its plants underwent another shutdown in January 2025 to mitigate losses.
Investment Contributions
Merits from core investments included:
- A 21% YoY increase in JGS’ share of Meralco’s net income to Php11.9 billion.
- Improved hotel and property operations at Singapore Land Group, boosting equity share income by 31%.
- Regular dividends from PLDT and inaugural dividends from BPI post-merger.
CEO Statement and Outlook
President and CEO Lance Y. Gokongwei remarked, “2024 was a year of mixed results across our units and investments. For 2025, we aim to accelerate topline growth, leveraging eased inflation and rebounding consumer sentiment.”
He highlighted progress in key initiatives:
- Expanding value-for-money offerings at URC.
- Adding aircraft capacity at Cebu Pacific.
- Advancing RLC investment projects.
Despite challenges in petrochemicals, Gokongwei remains optimistic about growth prospects in emerging ventures like GoTyme and DHL Summit Solutions.
