JG Summit Holdings Inc., the parent company of the Gokongwei group, announced a 10 percent increase in net income for 2024, rising to P22 billion from P20.04 billion in 2023. Company revenue also grew by 11 percent, reaching P379.7 billion, up from P343.96 billion the previous year. This was bolstered by realized gains from the merger between Robinsons Bank and the Bank of the Philippine Islands.
Lance Y. Gokongwei, president and CEO, noted that while 2024 saw mixed results across the company’s various units and investments, the focus for 2025 will be accelerating top-line growth. Gokongwei is optimistic about the rebound in consumer sentiment as inflation eases, and expects momentum from ongoing initiatives across the group’s subsidiaries, including value-for-money offerings at Universal Robina Corp. (URC), increased aircraft capacity at Cebu Pacific, and new projects from Robinsons Land Corp. (RLC).
However, challenges persist, particularly within JG Summit Olefins Corp. (JGSOC), which continues to struggle with adverse market conditions in the global petrochemicals industry. JGSOC revenue grew 33 percent to P50.4 billion, driven by higher sales volume, but margins remained under pressure, contributing to wider losses. For the full year, JGSOC posted EBITDA losses of P6.2 billion and net losses of P16.5 billion. As a result, the company announced an indefinite commercial shutdown of JGSOC’s plants in January this year to mitigate further losses.
The holding company’s net debt increased by 17 percent to P66.6 billion, largely due to a P17.1 billion capital infusion into JGSOC to help the unit meet its financial obligations. Despite challenges, Gokongwei remains confident in the long-term trajectory of the group’s ecosystem plays, including digital banking arm GoTyme and logistics business DHL Summit Solutions, which are expanding their customer base.
In summary, while JG Summit Holdings showed robust financial growth in 2024, its petrochemical segment faces significant headwinds, requiring strategic measures to weather the market downturn.
