JG Summit Q1 Earnings Drop as Cebu Pacific Costs Soar, Merger Gains Fade

JG Summit Holdings Inc., led by the Gokongwei family, saw its core net income drop in the first quarter of 2025, citing increased costs and the absence of significant one-time earnings recorded last year.

The company reported a core profit of ₱4.4 billion, sharply down from ₱12.6 billion in the same period last year. The decline was largely due to the ₱7.9 billion merger-related gains in 2024 from the integration of Robinsons Bank with Bank of the Philippine Islands, which were not repeated this year.

When excluding both the previous year’s merger windfall and losses from its petrochemical division, JG Summit posted a 7% year-on-year decrease in core net income, amounting to ₱8.0 billion. This was largely influenced by expenses from Cebu Pacific’s ₱1.4-trillion aircraft order in 2024.

Cebu Pacific, JG Summit’s low-cost airline, saw its revenues rise by 20% to ₱30.4 billion, but its core income dropped by 60% to ₱0.7 billion due to the increased investments.

Meanwhile, the petrochemicals segment under JG Summit Olefins Corporation took a hit as plant operations halted in January, cutting revenues by 46% to ₱7.6 billion.

Universal Robina Corp. (URC), the group’s food arm, posted a 7% rise in revenues to ₱45.3 billion and a 5% gain in core income to ₱3.9 billion. Real estate unit Robinsons Land Corp. (RLC) saw a modest 1% increase in revenues to ₱10.7 billion, with core profit reaching ₱6.3 billion.

JG Summit President and CEO Lance Gokongwei expressed optimism, citing improving consumer confidence driven by easing inflation, along with favorable currency and oil price trends, as positive indicators for future growth.

As of the latest trading session, JG Summit shares dropped slightly by ₱0.12 to ₱18.38.