Strong Leisure Demand Plus Recovering Consumption Buoyed JGS’ Q1 2025 Topline

​JG Summit Holdings, Inc. (JGS), one of the largest conglomerates in the Philippines, posted higher consolidated revenues of P98.2 billion in the first quarter of 2025 (1Q25) vs P96.6 billion in the same period last year (SPLY). This performance was driven by the sustained leisure demand plus recovering domestic consumption.

​JGS saw robust uptake for travel, malls, and hotel offerings as well as green shoots in consumption for its food and beverage products. These outweighed the expected decline in residential and petrochemical revenues compared to SPLY. Omitting the results of its petrochemical unit, whose production was halted indefinitely beginning January of this year, JGS’ topline grew 10% year-on-year (YoY).
 
The absence of last year’s P7.9 billion Robinsons Bank-BPI merger gains largely accounted for the decline in JGS’ core profits from P12.6 billion in 1Q24 to P4.4 billion in 1Q25. Excluding the merger gains and the losses from its petrochemical business, core net income only fell 7% YoY from P8.0 billion to P7.4 billion, mainly driven by the increased costs associated with the significant fleet investments made by its airline in the second half of the previous year.
After taking into account non-core items, the company’s bottomline ended at P4.3 billion in 1Q25, coming from P11.0 billion SPLY.
 
JG Summit’s balance sheet also remains robust, ensuring its resilience and enabling further growth across the conglomerate. Consolidated debt-to-equity and net debt-to-equity ratios stood at 0.65 and 0.53, respectively, as of end-March and is expected to remain stable in the coming quarters. In addition, the parent expects to receive at least Php11.2 billion in dividends in the second quarter, about 13% higher than SPLY.
 
JGS President and CEO Mr. Lance Y. Gokongwei acknowledges the conglomerate’s first quarter performance, saying, “We continue to build on the momentum brought about by the strategic interventions we have implemented in the second half of last year. This is evident across our core units in food, with its branded consumer foods business posting double digit volume growth, and airline, with strong passenger and cargo volumes in the recently concluded quarter. For our real estate arm, the investment portfolio consisting of malls, offices, hotels, and warehouses continues to counterbalance the weakness in the residential segment. Our new businesses in logistics and airport operations are now profit generating while we are seeing a very good trajectory for our digital bank to break-even in the near term. Our decision to extend the shutdown of our petrochemical unit will also help reduce the drag on our profitability.
 
We are hopeful that the encouraging trends we are seeing in improving consumer sentiment brought about by the tempering inflation coupled with the favorable forex and oil prices will help accelerate demand and translate to better topline growth and improving margins for the balance of the year.”
 
Key performances per business unit are as follows:
 
Universal Robina Corporation (URC) recorded a 7% revenue growth to P45.3 billion, with accelerating momentum from the domestic Branded Consumer Foods (BCF) business delivering double-digit volume growth in multiple categories. This was further boosted by the strong sales growth in BCF International and Sugar. Operating income rose slightly to P5.5 billion from P5.4 billion in the SPLY, with the margin expansion in its branded business countering the lower contributions from feeds and commodities as well as rising coffee costs. Due to lower foreign exchange (FX) gains in 1Q25 vs SPLY, net income slipped 2% to P4.1 billion. But core profits, which excludes the impact of FX adjustments, climbed 5% to P3.9 billion.
 
The company continues to execute countermeasures in its domestic branded business, especially in the Coffee and Noodles categories, with key restages underway in the second quarter. It is also monitoring the volatile pricing of coffee and cocoa and has locked in prices through the end of the year. Its pet food segment, on the other hand, plans to introduce new products while continuing to broaden its distribution network in the succeeding months.
 
Robinsons Land Corporation’s (RLC) sustained investment portfolio growth continued to buoy RLC’s topline as it balanced out the decline in residential revenues recognized from fewer units sold during the pandemic. Topline for 1Q25 ended 1% higher YoY at P10.7 billion. In line with the rise in revenues, EBITDA as well as core and net profits all increased by P0.2 billion to P6.3 billion and P3.5 billion,
respectively. Its occupancy rates remained steady vs end-2024, standing at 86% for Offices and 93% for Malls. Additionally, RLC’s Malls division opened its 56th mall, Robinsons Pagadian, which increased gross leasable area by 23,800 square meters. Its Destination Estates division also continues to improve its offerings and further developing its newer estates.
 
Cebu Air, Inc.’s (CEB) robust passenger demand coupled with its network expansion facilitated the absorption of the capacity additions it made in the latter half of 2024. This translated into a 20% rise in revenues from P25.3 billion in 1Q24 to P30.4 billion to 1Q25. Higher fleet-related costs from additional planes and engine deliveries last year also meant short-term margin pressures, but these costs are expected to annualize as the year unfolds. Increased operating and maintenance costs kept 1Q25 EBITDA flat YoY at P6.7 billion, while additional aircraft depreciation and financing costs drove core and net income down 60% and 79% YoY to P0.7 billion and P0.5 billion, respectively.
 
CEB fortified its market leadership with its domestic market share expanding 4 percentage points (ppts) to nearly 57%, and its international market share climbing 2 ppts to 23% vs end-2024. Despite higher flight volumes, it was able to improve its on time performance quarter-on-quarter. It also received one aircraft in the first quarter and is expecting to have a total of 2 net AC additions in 2025. Lastly, it has already begun flying to El Nido after acquiring AirSWIFT and integrating the latter’s bookings into CEB’s system.
 
JG Summit Olefins Corporation (JGSOC) saw a decline in its petrochemical sales as production stopped with the plant shutdown initiated in January 2025. Hence, total revenues fell 46% YoY to P7.6 billion, even with the 24% expansion in its fuels trading business providing cushion. The plant shutdown alongside slightly positive polymer margins this year helped EBITDA and core losses to narrow by P209 million and P332 million vs SPLY. Bottomline, however, remained flat at a P3.3 billion loss due to non-recurring costs that were incurred to facilitate the shutdown.
 
As approved by the JG Summit board of directors, JGSOC will be on a prolonged shutdown for at least 2 years, as market challenges in the global petrochemical industry persist. During this period, the focus will be on preserving the assets in the plant complex while evaluating strategic options for the business moving forward. Meanwhile, its liquefied petroleum gas (LPG) trading arm, Peak Fuel Corporation, will continue to operate.
 
Core Investments
 
JGS saw a 9% increase in its share in Meralco’s net income to P2.7 billion, driven by higher sales volumes from its distribution business plus improving contributions from its power generation segment.
 
PLDT also declared dividends of P47 per share, a 1-peso increase vs SPLY. This translated to P1.1 billion in dividend receipts for JGS, up 2% YoY.
 
The 1Q25 performance of JGS does not yet reflect contributions from its other core investments, because Singapore Land reports its results on a semi-annual basis, while BPI usually begins declaring its dividends in the second quarter of each year.