JG Summit Holdings Inc., the listed flagship investment holding company of the Gokongwei Group, posted a 7-percent increase in first-quarter revenues to P99.9 billion, driven by record passenger traffic at Cebu Pacific, steady demand for branded food products, and resilient contributions from its property and investment portfolio despite mounting economic headwinds.
Consolidated operating profit rose 9 percent year-on-year to P17.1 billion, reflecting stronger performance across the conglomerate’s core businesses. However, core net income slipped 8 percent to P6.9 billion due to higher interest expenses tied to debt absorbed from its discontinued petrochemical business, a larger minority share in its real estate investment trust, and weaker sugar prices affecting its commodities operations.
Including foreign exchange losses from the peso’s depreciation against the dollar, net income from continuing operations fell 27 percent to P5.5 billion. Still, after factoring in reduced losses from discontinued petrochemical operations, reported net income climbed 19 percent to P5.2 billion.
JG Summit president and chief executive officer Lance Gokongwei said the group is bracing for prolonged volatility stemming from geopolitical tensions, rising fuel prices, and peso weakness.
“Rising fuel costs and peso depreciation are creating dual pressures—compressing margins while simultaneously weighing on consumer purchasing power,” Gokongwei said.
The conglomerate’s airline unit, Cebu Air Inc., carried a record 7.5 million passengers during the quarter, lifting revenues 10 percent to P33.3 billion. But the budget carrier still posted a P400-million net loss due to foreign exchange translation losses on dollar-denominated debt.
Food unit Universal Robina Corp. grew revenues 6 percent to P47.9 billion on higher snack and beverage sales, although profits were pressured by weaker sugar prices and elevated freight costs linked to the Middle East conflict.
Meanwhile, Robinsons Land Corp. posted an 11-percent increase in revenues to P12.2 billion as mall and office occupancy improved.
Despite the uncertain backdrop, JG Summit maintained a healthy balance sheet, with debt ratios remaining manageable and dividend inflows expected to rise 16 percent in the first half.
