JG Summit Holdings Inc., the flagship conglomerate of the Gokongwei group, reported a steep 61 percent decline in net income to ₱4.3 billion in the first quarter of 2025, down from ₱11 billion a year ago. The drop was primarily due to the absence of last year’s ₱7.9-billion one-time gain from the Robinsons Bank-Bank of the Philippine Islands merger, and a significant downturn in its petrochemical operations.
Excluding these factors, the company said core income fell a more modest 7 percent year-on-year to ₱7.4 billion.
Revenue growth was largely flat, with consolidated sales inching up by 1 percent to ₱98.2 billion, driven by resilient domestic consumption and sustained demand in leisure and travel segments. JG Summit highlighted strong performance from its food and beverage, airline, and property units, with double-digit volume growth in its branded consumer foods and robust passenger and cargo activity at Cebu Pacific.
“These outweighed the expected decline in residential and petrochemical revenue,” the company said.
President and CEO Lance Y. Gokongwei emphasized the positive momentum in core units and the growing contribution of new ventures. “Our logistics and airport operations are now profit-generating, and our digital bank is on a promising path to break-even,” Gokongwei said. He also said easing inflation, stable foreign exchange, and oil prices could further lift consumer sentiment and margins in the months ahead.
However, the group’s petrochemical arm, JG Summit Olefins Corp., was a significant drag on performance. Revenue from the unit slumped 46 percent to ₱7.6 billion due to a plant shutdown in January. Despite a 24 percent increase in its fuels trading business, the segment remains under pressure. The board approved a prolonged shutdown of petrochemical operations for at least two years as global market headwinds persist. During this period, the company will focus on preserving assets and exploring strategic alternatives.
Its LPG trading unit, Peak Fuel Corp., will continue to operate during this hiatus.
The results underscore JG Summit’s shifting corporate focus toward higher-margin, resilient sectors while navigating global volatility in petrochemicals—a legacy business that now poses strategic challenges.
