JG Summit income surges to P10.7B on core business gains

JG SUMMIT Holdings, Inc. posted a 175% jump in second-quarter (Q2) net income to P10.7 billion, driven by strong performances in its airline, real estate, and food and beverage businesses, reduced losses in its petrochemical segment, and gains from compensation related to aircraft engine issues.

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Consolidated revenue grew by 5% to P95.9 billion, while core profit surged by 87% to P10.4 billion, driven by the expanding operations of its air transport, property, and food and beverage businesses, as well as a gain recognized from engines provided by Pratt & Whitney as compensation for ongoing aircraft-on-ground issues, the conglomerate said in a regulatory filing on Monday.

“This was supported by robust leisure demand benefiting its airline and property businesses, alongside the sustained domestic consumption seen by its food & beverage arm. These more than made up for the expected decline in petrochemical sales given the plant shutdown which began early this year,” JG Summit said.

“Overall, we are optimistic about the future prospects of the business and will continue to look for opportunities to scale up into adjacencies in airport infrastructure, supply chain/logistics, and digital finance,” JG Summit President and Chief Executive Officer Lance Y. Gokongwei said.