JG Summit sees rosy prospects after erasing losses in Q1

MANILA  -JG Summit Holdings Inc. expects its core businesses to surpass prepandemic levels after registering a net income in the first quarter, a turnaround from last year, as the overall economy continued to improve.

In a statement on Monday, the Gokongwei-led conglomerate said it booked a net income of P5 billion in the first quarter, reversing its losses of P2.8 billion last year.

“Despite the lingering market challenges on the petrochemicals industry, most of our core businesses are now poised to approximate or even eclipse their prepandemic highs with strong recovery in our airline, consistent growth of our food driven by buoyant demand, and the reliability of our real estate earnings,” JG Summit president Lance Gokongwei said.

Top line figure grew by 28 percent to P82.3 billion in the first three months alongside the robust growth in the air transport, property and food segments.

Universal Robina Corp. saw its revenues rise by 11 percent to P39.8 billion but net income was flat at P3.4 billion due to higher interest on working capital loans and lower foreign exchange gains.

Robinsons Land Corp. nearly doubled its net income to P2.7 billion amid higher foot traffic, more bookings in its hotels and a “steady” growth in its office segments.

Cebu Air Inc., the company operating budget carrier Cebu Pacific, returned to profitability in the first quarter for the first time since 2020 with the resurgence of travel and tourism. It booked P1.08 billion in net income, a turnaround from a P7.61-billion net loss in the same period last year.

Robinsons Bank Corp.’s net income dipped by P100 million to P400 million “as the repricing of its loan portfolio lagged the rapid rise in funding costs.”

JG Summit said it was keen on continuing to invest in new aircraft, land banking and development projects.

“This appetite to invest supports our belief that demand will continue to be robust for the balance of the year and onwards,” Gokongwei said.

—Tyrone Jasper C. Piad INQ

https://business.inquirer.net/393694/jg-summit-revenues-up-but-earnings-down-in-2022