JG Summit income grows over 10-fold in 9 months

MANILA, Philippines — JG Summit Holdings Inc. (JGS)  of the Gokongwei Group reported a core net income of P6.5 billion in the nine months to September, an increase of more than 10-fold compared to the P600 million recorded a year ago.

JG Summit president and CEO Lance Gokongwei said the company’s core businesses continue to benefit from sustained strong demand.

“Our core businesses in food, airline, real estate and banking continue to benefit from the sustained strong demand brought about by the increase in economic activity and mobility despite the high inflationary environment while our petrochemicals business continue to suffer from weaker export demand,” he said.

Gokongwei said the company has implemented strategies from gradual pricing actions and cost management initiatives to cushion the impact on JG Summit’s bottom line and margins.

“While we anticipate to finish the year stronger with topline momentum continuing into the fourth quarter, our stance on margin recovery remains cautious,” he said.

The income growth was driven by both the significant improvements in the operating results of its consumer-facing businesses and a P3.2 billion gain from the sale of its 3.2 percent stake in Manila Electric Co. in July.

JGS’ consolidated revenues grew to P224.8 billion during the nine-month period as its key subsidiaries in food, property and banking posted double-digit topline growth.

Its airline likewise saw strong recovery as travel restrictions were eased.

Universal Robina Corp. grew its revenue by 26 percent to P107.9 billion during the nine-month period, leading to a third straight quarter with the highest monthly sales in history. Core net income grew by 10 percent year-on-year. However, the gain on sale of idle assets recognized last year caused an apparent 11 percent decline in net income to P9.3 billion during the period.

Robinsons Land Corp. posted a net income  of P6.7 billion, up six percent.

Cebu Air’s consolidated revenues, meanwhile, reached P37.5 billion, up 310 percent from a year ago, substantially reducing the company’s net losses by nearly 50 percent to P12 billion a year ago.

JG Summit Olefins Corp. posted a net loss of P9 billion  due to higher depreciation, interest, and forex losses.

Robinsons Bank’s nine-month net income, meanwhile, grew by 37 percent to P1.3 billion, already surpassing its full-year 2021 profits.