Strong 2025 growth seen for JG Summit

MANILA, Philippines — Conglomerate JG Summit Holdings Inc. expects its upward trajectory to continue this year, with the group optimistic that upbeat consumer confidence and a low inflation environment will support growth across its diverse portfolio.

“We expect to have better year this year,” JG Summit president and CEO Lance Gokongwei told The STAR in an interview.

“Last year, our core net income included the sale of BPI (Bank of the Philippine Islands). But excluding the BPI (sale), we expect to be up quite significantly (this year),” he said.

In 2024, JG Summit’s core earnings climbed by 29 percent to P24.9 billion following a double-digit expansion in revenues.

Its core net income last year also got a boost from the P7.9-billion gain recognized after the merger of its banking subsidiary with BPI became effective in 2024.

Incorporating non-core items such as mark-to-market and foreign exchange movements as well as losses from unplanned shutdowns and discontinued operations, the company’s net profit managed to grow by 10 percent year-on-year to P22 billion.

This year, Gokongwei expects that Philippine consumers will face less inflation given declining oil prices.

“Oil prices have gone down. Peso has strengthened so this means lower inflation. This means more consumption. People will have more money to spend,” Gokongwei said.

“And I think the government has taken very active measures also to bring down the price of rice and we’re seeing that already in the inflation numbers. I think after that, there will be trickle down effects. The BSP has already spoken about reducing the interest rates,” he said.

Gokongwei is hopeful that consumer confidence will continue to rebound this year as inflation further eases.

For 2025, JG Summit has earmarked P69.2 billion in capital expenditures, the bulk of which will go to Cebu Air at P33 billion.

Cebu Pacific is looking at deliveries of seven aircraft and six engines this year.

Real estate arm Robinsons Land Corp., meanwhile, is alloting P23 billion to fund the expansion across its malls, offices, logistics and hotels.

Universal Robina Corp., for its part, will spend P11.1 billion, primarily for carryover projects for its Malvar mega plant.

As one of the largest and most diversified Filipino conglomerates, JG Summit has investments in businesses that serve a growing middle class with rising disposable incomes in the Philippines and Asia.