JG Summit Holdings, Inc., the investment holding company of the Gokongwei Group, said Tuesday it booked a net profit of P20.2 billion last year, a sharp gain from the P700 million net income in 2022 on higher revenues and better operating margins across its diverse business interests as well as foreign exchange gains.
JG Summit said the strong earnings performance last year was anchored on the turnaround in the company’s airline brand Cebu Pacific and the improved margins in its property and food businesses and tapering losses from its petrochemical unit.
Total revenue rose 14 percent to P343.8 billion on account of the first full year of unrestricted travel demand coupled with the broad-based growth in its real estate unit and the steady improvement in its food and petrochemical sales.
Even with the absence of the P3.2 billion gain on sale of Manila Electric Co. shares that was recognized in 2022, JG Summit said its consolidated core net income surged three fold.
The conglomerate’s cash and long-term debt fell by 74 percent and 35 percent, respectively, after the company fully settled its USD750 million bond in January 2023, without need for refinancing.
JG summit president and chief executive officer Lance Gokongwei said the full removal of mobility restrictions imposed due to the COVID-19 pandemic provided the boost needed by the airline and food businesses as well as the property business under Robinsons Land Corp.
He said although the petrochemical business still suffered from weaker overall demand, efforts are underway to ensure it remains competitive when the business cycle turns.
“As we look forward, easing inflation and the potential rate cuts would bode well for consumer demand and lower input price,” said Gokongwei. “We hope to recover lost volume and market shares in our food business, sustain portfolio expansion in our real estate arm, increase capacity and short-haul recovery for our airline, and crystallize the financial gains from our petrochemical transformation program. These would allow us to bring our core profits closer to its pre-pandemic record levels within the next 12 months,” he added.
