Listed subs’ robust performance, tapered petrochem losses lift JGS’ 2Q & H1 results

​JG Summit Holdings, Inc. (JGS), one of the Philippines’ largest conglomerates, saw strong year-on-year (YoY) performances in all its listed subsidiaries alongside tapering losses in its petrochemical business, driving the improvement in its second quarter (2Q) and first half 2025 (H125) results.

​JGS recorded consolidated revenues of P194.0 billion for H125, a 3% year-on-year (YoY) increase from the same period last year (SPLY). In the second quarter alone, revenues rose by 5% YoY to P95.9 billion. This was supported by robust leisure demand benefiting its airline and property businesses, alongside the sustained domestic consumption seen by its food & beverage arm. These more than made up for the expected decline in petrochemical sales given the plant shutdown which began early this year. Excluding the petrochemical business, JGS’ topline climbed 14% and 12% vs 2Q and H1 of the previous year, respectively.

Core profits saw an 87% improvement in 2Q to P10.4 billion on the back of expanding operations of its air transport, property, and food & beverage businesses, plus the gain it recognized on the engines provided by Pratt & Whitney in compensation for the ongoing Aircraft on-Ground (AOG) issues. Looking at H125, the absence of the P7.9 billion bank merger gain booked in 1Q24 explains the 19% YoY core profit decline to P14.8 billion. But the P3.2 billion equitized gain from the aforementioned Pratt & Whitney engines provided cushion. Excluding the one-off gains from the merger and engines, recurring core net income improved 14% YoY to P11.6 billion.

All told, net income jumped 175 YoY% to P10.7 billion in 2Q25, largely in line with core profits. For H125, net income remained steady at P15.0 billion as the strong core performance, engine gains plus non-core forex and mark-to-market movements this year offset the absence of last year’s bank merger gains.

The strength of the group’s balance sheet underpins its ongoing growth. As of end-June, consolidated debt-to-equity and net debt-to-equity were 0.61 and 0.49, respectively. The parent company collected P11.7 billion in dividends in the first half, 13% higher than the previous year.

JG Summit’s President and CEO Mr. Lance Y. Gokongwei commends the group’s results, saying, “We continue to see sustained topline performance from our core business units as we benefit from improving consumer sentiment driven by easing inflation. This growth has trickled down to improving core earnings, further helped by the lower losses from the shutdown of our Petrochemicals facility. We also expect higher dividends this year coming from our core units and investments. Overall, we are optimistic on the future prospect of the business and will continue to look for opportunities to scale up into adjacencies in airport infrastructure, supply chain/logistics, and digital finance.”

Key performances per business unit are as follows:

Food: Universal Robina Corporation (URC)

URC posted a 6% YoY revenue growth to P85.9 billion in H125, driven by healthy volume expansion in most of its Branded Consumer Foods Philippines (BCF PH) categories, its Malaysia and Indonesia markets, and its Sugar division. URC’s domestic operations saw double-digit volume growth in the Snacks and RTD Beverages categories, while restaging efforts in its Powdered Coffee category showed early signs of market share stabilization. Internationally, market shares continued to strengthen, and its Flour division remains focused on ramping up the utilization of its Sariaya flour mill for the balance of the year. However, the Animal Nutrition and Health division saw challenges due to the ASF outbreak, which dampened Hog Feeds demand, and downtrading, which affected the Pet Food market.

Operating profits were flat at P9.4 billion in H125 as the tight cost control across all business units were able to cushion the impact of rising coffee costs. Excluding Coffee, EBIT for BCF PH would see a double-digit growth vs SPLY. Core net income climbed 3% YoY to P6.5 billion, but a one-time impairment loss due to the cessation of operations of the Packaging division pulled back H125 net income by 5% YoY to P6.3 billion.

Real Estate and Hotels: Robinsons Land Corporation (RLC)

RLC achieved an 11% YoY increase in topline to P22.2 billion for H125, with the continued investment portfolio growth being supported by higher realized revenues from high-value residential projects and strong ready-for-occupancy unit sales. This drove EBITDA to rise 3% YoY to P12.5 billion, despite lower contributions from its Joint Ventures and Destination Estates divisions. Meanwhile, core and net profits improved by 6% and 5% YoY, respectively, to P6.9 billion, aided by lower interest rates which outweighed the additional depreciation it recorded from newly opened properties.

As RLC’s investment portfolio growth continued to drive topline expansion, its Mall and Office occupancy rates improved quarter-on-quarter to 94% and 87%, respectively. The company also remains focused on its 5-year strategic program, with targets to be delivered by expanding and diversifying its investment portfolio, unlocking capital through active asset monetization, elevating offerings through premiumization across business units, forging high-impact strategic partnerships, and enhancing the customer experience through new business streams and ecosystem initiatives.

Air Transportation: Cebu Air, Inc. (CEB)

CEB reported a 23% YoY increase in revenues to P63.3 billion for H125, driven by a 21% boost in passenger volumes, higher passenger yields, and 43% more cargo kilograms carried YoY. EBITDA increased 31% YoY to P17.4 billion, as revenue growth was supported by improved operational efficiency, lower fuel prices, and sustained cost discipline. With its larger fleet and network, core profits increased 17% YoY to P4.3 billion, while additional gains from engines received as compensation from Pratt & Whitney pushed Net Income up 153% YoY to P9 billion.

With over 56% share in the domestic market and a 23% share in international, CEB reinforces its position as the Philippines' leading carrier. It opened 30 new routes YoY and expanded its non Manila hub seats by 48%. In addition, it continues to establish strategic partnerships to improve operational efficiency. This includes a renewed partnership with Air France - KLM, and an ongoing wet-lease agreement with flyadeal, which would improve aircraft productivity during lean months.

Petrochemicals: JG Summit Olefins Corporation (JGSOC)

From the time the prolonged shutdown of JGSOC’s petrochemical plant was approved by the Board in May 2025, the first phase of initiatives focusing on asset preservation, organizational rationalization, and balance sheet management has been completed. All of JGSOC’s debt has been transferred to the parent company and cash burn has also been significantly reduced, while its LPG trading arm continues to operate.

Management has also been actively engaging with various parties as it explores strategic possibilities, further deepens its understanding of market dynamics, and identifies the most viable path that will maximize value for the company.

Core Investments

JG Summit’s share in Meralco’s net income grew by 5% YoY to P6.1 billion in H125, driven by higher sales volumes in its distribution business and improved contributions from its power generation segment.

Equity income from Singapore Land increased by 9% YoY to P1.5 billion, supported by higher contributions from property investments as well as better occupancy and rental rates from commercial properties.

PLDT paid dividends of P47 per share, translating to P1.1 billion in dividend receipts for JGS, up 2% YoY. BPI also declared higher dividends, contributing to a 5% YoY increase in income from this investment.