JG Summit profit ballooned to P20.2 billion in 2023
MANILA, Philippines — Gokongwei-led conglomerate JG Summit Holdings Inc. is optimistic that potential interest rate cuts could “bode well” for consumer demand this year as revenge travelers emerged postpandemic.
JG Summit on Tuesday said its net income in 2023 ballooned to P20.2 billion from P700 million the previous year, buoyed by its airline and property businesses.
The company core earnings also saw a steep 216-percent climb to P19.6 billion as it tapered losses from its petrochemical unit.
In a stock exchange filing, JG Summit noted revenues likewise jumped by 14 percent to P343.8 billion as mobility restrictions eased, boosting travel demand.
This happened despite the absence of a P3.2-billion, one-time gain from the sale of its shares in distributor Manila Electric Co. that was recognized in 2022, the company said.
Airline, property businesses up
“In 2023, we saw our airline and property businesses benefiting from fully lifted mobility restrictions while we carefully navigated the tough inflationary environment that affected demand and margins, specifically for our food business,” JG Summit president and CEO Lance Gokongwei said in a statement.
READ: Cebu Pacific parent erases losses on bigger demand for travel
The company’s major businesses include Cebu Pacific, Universal Robina Corp., Robinsons Land Corp. (RLC) and JG Summit Olefins Corp.
Budget carrier Cebu Pacific returned to profitability, with earnings standing at P7.9 billion from a P14-billion loss in 2022.
At the same time, real estate unit RLC also enjoyed increased mobility and consumer spending as its net income jumped by 24 percent to P12.1 billion.
READ: Robinsons Land nets record P12.06B
JG Summit’s long-term debt fell by 35 percent after settling its $750-million bond in January 2023.
“As we look forward, easing inflation and the potential rate cuts would bode well for consumer demand and lower input prices,” Gokongwei said.
According to analysts, the Bangko Sentral ng Pilipinas is likely to reduce the benchmark interest rate this year by a total of 0.75 percentage point to end at 5.75 percent from the current 6.5 percent. INQ
