JG Summit Holdings Inc., the Gokongwei group’s flagship firm, posted a 29 percent drop in first-half net income to P10.7 billion from last year’s P14.99 billion, though reduced losses from its exited petrochemical operations softened the fall. Core net income fell 37 percent to P13 billion, hit by airline struggles tied to rising oil costs. Higher parent-level interest expenses also weighed on results, after the company took on debt from its former petrochemical unit.
Consolidated revenues rose 7 percent to P200 billion, supported by real estate growth, steady gains in food and animal nutrition, and higher passenger numbers for its airline even with increased fares.
“Our results show the strength of our diverse businesses — revenue grew 7 percent on the back of property gains and solid food performance, while our airline carried more passengers despite higher fares. We continue to work to offset higher costs and softer consumer demand,” said president and CEO Lance Y. Gokongwei.
He noted profitability pressures will likely stay for the rest of the year, especially for the airline, due to high fuel costs and slower travel demand in the third quarter. Inflation also creates uncertainty around consumer spending and near-term revenue growth. “We remain focused on protecting long-term shareholder value while taking practical steps to improve performance amid tough conditions,” he added.
Earnings from its stake in Manila Electric Co. rose 15 percent to P7.1 billion, driven by stronger power generation — particularly from the LNGPH facility in Batangas. Income from its share in Singapore Land Group climbed 61 percent to P2.3 billion, lifted by better returns on property investments and development projects.
