GOKONGWEI-LED conglomerate JG Summit Holdings Inc. (JG Summit) saw its core profit in the first six months of 2024 double to P18.1 billion from P9.5 billion last year on a surge in demand for travel and leisure activities and realized gains from the merger between Robinsons Bank and the Bank of the Philippine Islands (BPI) at the start of the year.
Consolidated revenues rose nearly 15 percent to P187.8 billion and were up 13 percent in the second quarter, boosted by an increase in petrochemical operations and higher food and beverage sales volumes.
“We continue to post overall topline growth despite the lingering effects of inflation… We have seen a divergence of results from our operating units with the strong demand for travel and leisure benefiting our air transport and real estate businesses,” JG Summit President and CEO Lance Gokongwei said in a statement Monday.
Excluding a P7.9-billion merger gain, recurring core profits grew 12 percent, the company said, while reported net income, which incorporates non-core items such as foreign exchange and mark-to-market losses, stood at P14.8 billion, up 43 percent YoY.
Consolidated debt to equity (D/E) and net D/E ratios were at 0.67 and 0.55 as of end June.
Dividend receipts from its investee companies grew 13 percent to P10.3 billion, as Universal Robina Corp. (URC), Robinsons Land Corp. (RLC) increased its cash dividends and as the first cash dividends received from BPI “more than made up for the absence of PLDT’s 2023 special dividends,” effectively cutting parent net debt by 5 percent to P54.2 billion.
By segment, URC posted earnings of P80.7 billion in the first half, RLC contributed P20 billion, Cebu Air, Inc. grew its topline 18 percent to P51.4 billion, and JG Summit Olefins Corp. added another P25.5 billion to total revenues.
For its core investments, JG Summit’s share in Manila Electric Co.’s income climbed 26 percent to P5.8 billion.
Equity earnings from Singapore Land Group, meanwhile, grew 15 percent to P1.3 billion.
JG Summit shares were unchanged at P25.20 apiece on Monday.
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