JG Summit Holdings Inc. of the Gokongwei Group said Monday its core net income doubled to P18.1 billion in the first half of 2024 from the same period last year on the back of a P7.9-billion one-time gain from the merger of the Bank of the Philippine Islands and Robinsons Bank that took effect at the start of the year.
Excluding the P7.9-billion merger gain, recurring core profits grew 12 percent year-on-year, the company said in a disclosure to the stock exchange.
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 from a year ago.
First-half revenues rose 15 percent year-on-year to P187.8 billion, boosted by increased demand for tourism and recreation, along with improved petrochemical operations and higher food and beverage sales volumes.
“We continue to post overall topline growth despite the lingering effects of inflation which dampened consumer sentiment. 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 chief executive Lance Gokongwei said.
“Our food and beverage unit continues to deliver higher sales volumes, but product mix has changed into lower price point categories, while increased plant utilization in our petrochemicals unit pulled up revenues in the first half. Coupled with our initiatives to drive productivity and better operating leverage, we have now seen improvements in margins,” said Gokongwei.
Gokongwei said the company hopes to sustain this momentum in the second half of 2024, as the expected decline in inflation rate could boost consumer demand.
“We will continue to execute our commercial strategies to drive topline growth while implementing overall operational discipline to ensure we sustain the year-on-year recovery in core net income and margins,” he said.
The conglomerate has investments in real estate, airline, food manufacturing and petrochemicals. It also owns stake in Manila Electric Co, PLDT Inc. and Singapore Land Group.
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