MANILA, Philippines – The net income of JG Summit Holdings Inc., led by the Gokongwei family, climbed by 10% to reach PHP 22 billion in 2024 due to profits from selling their bank subsidiary, compensating for challenges faced by its aviation division.
Core net income, encompassing one-time profits, jumped by 29 percent to reach P24.9 billion.
On Thursday, in an official paperwork submission, the large corporation reported that their earnings concluded at PHP 379.7 billion, marking an increase of 11%.
Based on information from JG Summit, their earnings were boosted by a P7.9 billion profit resulting from the merger between Robinsons Bank and Ayala Corporation-controlled Bank of the Philippine Islands (BPI), which became the surviving entity post-merger. Shareholders of Robinsons Bank still maintain a 6% ownership interest in BPI.
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“Despite having varied outcomes from our various divisions and ventures, we managed to steer through 2024 successfully,” stated Lance Gokongwei, President and CEO of JG Summit, in an official statement.
Despite an increase in passenger numbers, Cebu Pacific concluded 2024 with a 32 percent decrease in net income due to expenses associated with expanding their aircraft fleet.
As stated separately, the airline disclosed that its net profit dropped to P5.4 billion in the previous year from P7.9 billion recorded in 2023.
The top line increased by 16 percent to reach ₱104.9 billion, with passenger revenue alone rising by 14 percent to hit ₱71.3 billion.
Additional businesses contributed P28 billion, an increase of 16 percent. In contrast, cargo revenues jumped 39 percent to reach P5.6 billion.
Regarding passenger traffic, the volume increased by 18 percent to reach 24.5 million.
The low-cost carrier dominated most of the domestic network with a 54.1 percent share. In terms of the international market, it claimed a 20.6 percent stake.
However, with the launch of new routes, Cebu Pacific was compelled to acquire extra airplanes and backup engines, which put pressure on their profits. The company currently operates 98 aircraft following the addition of 17 planes in the previous year.
The leasing of aircraft and engines totaled P900 million. Charges related to airports, including landing and takeoff fees, along with ground handling costs, added up to P11.37 billion.
Gokongwei was hoping that 2025 would tell a different tale.
“As we enter 2025, our main focus will be to boost the total revenue growth across all our business units due to the anticipated upturn in consumer confidence with the decline in inflation,” he noted.
At snack manufacturer Universal Robina Corp., earnings climbed to P161.9 billion, marking a 3% increase thanks to improvements in their overseas operations.
The real estate sector of Robinsons Land Corporation showed a 3% growth in revenue, reaching ₱40.1 billion. Meanwhile, JG Summit Olefins Corp., which operates in the petrochemical industry, experienced a significant surge of 33%, with revenues climbing to ₱50.4 billion.