JG Summit Profits Jump 29% YoY to P24.9B in 2024

JG Summit Holdings, Inc. (JGS), one of the Philippines’ largest and most diversified conglomerates, saw its core profits jump 29% year-on-year (YoY) to P24.9 billion in 2024 as its revenues expanded 11% and was further boosted by the realized gains from the merger between Robinsons Bank and Bank of the Philippine Islands (BPI)

JGS’ consolidated topline for the full year of 2024 (FY24) reached P379.7 billion. This performance was driven by a robust demand for travel and leisure, an improvement in sales volumes for the food and beverage business, and the resumption of its petrochemical plant operations coming from a commercial shutdown in the previous year. 

The company’s core net income was uplifted by the 7.9-billion-peso gain recognized after the merger of its banking subsidiary with BPI became effective last January 1, 2024. The gain more than offset specific headwinds in the conglomerate’s other businesses, namely the unfavorable polymer margins in its petrochemical business, the additional depreciation and interest expense from its airline’s fleet investments, and the sugar profit correction in its food and beverage arm. 

Incorporating non-core items such as mark-to-market and foreign exchange movements as well as losses from unplanned shutdowns and discontinued operations, net profits closed at P22.0 billion, 10% higher vs last year (LY).  

JGS also continues to have a strong financial foundation to support the businesses across the group. At the consolidated level, debt-to-equity and net gearing ratios were at 0.67 and 0.54, respectively, at the end of 2024. Meanwhile, the parent company received 10% more dividends in 2024, totaling P17.3 billion. The parent’s net debt of P66.6 billion rose by 17% vs end 2023 as it borrowed additional funds for the P17.1 billion capital infusion into JG Summit Olefins Corporation (JGSOC) in the fourth quarter of 2024 (4Q24). Such infusion was necessary to help JGSOC meet its maturing obligations and debt covenant amid the petrochemical cycle trough. 

Mr. Lance Y. Gokongwei, President and CEO of JGS, recognizes the conglomerate’s full-year performance saying, “We have successfully navigated 2024 with mixed results coming from our different units and investments. Coming into 2025, our key priority will be to accelerate the overall topline growth of our business units given the expected rebound in consumer sentiment as inflation eases. We expect that the initiatives that were started in 2024 will start to bear fruit and gain momentum – namely the value for money offerings in URC, the additional aircraft deliveries that added capacity for Cebu Pacific, and the finished projects for RLC’s investment portfolio. We are also very happy and optimistic on the trajectory of our ecosystem plays and partnerships – GoTyme, our digital banking arm which continues to acquire new accountholders, and DHL Summit Solutions, our supply chain and logistics play which has started venturing into new customers outside the group. Challenges in the portfolio continue to remain, however, specifically on JGSOC, with the prolonged global downcycle in the Petrochemicals industry.” 

Key performances per business unit are as follows:

Food: Universal Robina Corporation (URC)

URC’s FY24 topline growth of 3% YoY to P161.9 billion was supported by the strong performance of its international division. This offset challenges in its domestic Branded Consumer Foods business, which began showing positive momentum in 4Q. EBIT slipped to P16.7 billion, down 4% compared to the previous year, due to profit corrections in its Sugar and Renewables segment against last year’s high base. The lower EBIT, along with wider losses from discontinued China operations, led URC’s core and net income to decline by 5% and 4% YoY, respectively, to P11.3 billion and P11.7 billion.

The business continues to drive initiatives to grow volumes and increase market shares, focusing on Better Value, both in affordability and through its innovation pipeline. It will also increase spending in advertising and promotions to drive the positive momentum from 4Q24 into 2025. Its Sariaya flour mill is scheduled to be commissioned in the first half of 2025, while the Malvar mega plant is expected to commence commercial operations within the year.

Real Estate and Hotels: Robinsons Land Corporation (RLC)

The group’s real estate arm saw revenues expanding by 3% YoY to P40.1 billion in FY24, as its investment portfolio posted a 14% YoY growth and made up for the decline in the Residential segment with lower pandemic sales that are currently being recognized. In line with the movement in topline, EBITDA inched by 2% vs LY to P23.3 billion. On profits, RLC’s contribution to JG Summit’s consolidated core and net income ended flat YoY at P12.5 billion.

RLC also infused 13 additional assets into its REIT, RCR, throughout 2024. This allowed RCR to expand its presence across offices and malls. It also opened Opus Mall in July, marking the company’s first venture into the upscale mall segment. Meanwhile, for the 4th quarter, the company’s Malls and Offices divisions maintained their occupancy rates at 93% and 86%, respectively. It also completed new warehouses and work.able centers, as well as renovated various hotel properties. 

Air Transportation: Cebu Air, Inc. (CEB)

Cebu Air saw a 16% expansion in revenues to P104.9 billion, with 18% higher passengers flown in FY24 vs LY stirred up by a slight 3% YoY decrease in average fares in the latter half of the year. EBITDA amounting to P25.5 billion improved YoY around the same pace at 17%. Given the industry-wide aircraft supply issues that the company anticipated for 2024, the airline invested in additional fleet throughout the year, ending with a total of 98 aircraft vs 85 aircraft at the start of the year. This resulted in significantly higher depreciation and interest expense for 2024, leading to a decline in core and net profits by 31% and 32% to P5.3 billion and P5.4 billion, respectively. 

CEB was able to further solidify its domestic market leadership with a 54% share for FY24, 2 percentage points higher than pre-pandemic levels. It has also seen a 30% increase in passenger volumes in January and February 2025, indicating that the market has absorbed the additional capacity introduced in the latter half of 2024. Additionally, its integration plan for recently acquired boutique airline AirSwift is currently ongoing. 

Petrochemicals: JG Summit Olefins Corporation (JGSOC) 

The petrochemical industry continued to be hounded by tough market conditions, which led to wider losses in JGSOC despite higher sales volumes YoY. Compared to a low base due to the commercial shutdown it did in the first half of 2023, full-year revenues leapt to P50.4 billion in 2024, 33% up YoY. However, margins of the Polymer and Olefins products remained to be a challenge and greatly affected profitability despite the cushion from the Aromatics, Butadiene, and LPG Trading side of the business. With this, EBITDA losses widened to P6.2 billion while net losses widened to P16.5 billion. 

Similar to the shutdown done in 2023, JGSOC’s plants have been under an indefinite commercial shutdown since January 2025. This was done in order to mitigate the losses amid the current landscape. At the same time, JGSOC continues to evaluate various options to abate the adverse effects of the market conditions. 

Core Investments

JGS’ share in the net income of Meralco jumped 21% YoY to P11.9 billion. This was driven by the record distribution sales volumes it saw in 2024, while being supported by increased contributions from its power generation and retail electricity supply businesses. 

Singapore Land Group saw improved hotel operations plus increased rental rates and occupancy rates in its property investments, leading JGS’ equity share in FY24 net income to jump 31% YoY.

Regular dividends from PLDT saw a 2-peso-per-share increase to P96/share in 2024. However, this was weighed down by the absence of the special dividends declared in 2023, leading to an 11% decline in dividends received from PLDT YoY. 

Offsetting the decline in PLDT dividends, were the first set of dividends received by JGS from BPI after the merger effectivity in January 2024, amounting to P746 million.