JG Summit suffers P468-million loss as Cebu Pacific pulls down earnings in 2020

Gokongwei-led JG Summit Holdings posted a net loss of P468 million in 2020, as the coronavirus pandemic battered most of its subsidiaries.

JG Summit said Cebu Air, operator of budget airline Cebu Pacific, dragged the parent company into the red.

Excluding Cebu Air, net income would have only declined by 42% to P14.6 billion in 2020.

JG Summit's food and banking businesses provided some buffer to offset profit declines in other subsidiaries.

"Coming from a very strong 2019, COVID-19 has clearly disrupted the business which dented our 2020 operating and financial results. Nonetheless, our diversified portfolio of market-leading businesses coupled with the strength of our balance sheet helped us navigate the situation," said Lance Gokongwei, JG Summit president and chief executive officer.

Here is a snapshot of the performance of the conglomerate's businesses in 2020:

Universal Robina - Its net income grew 10% to P10.7 billion, while revenues were flat at P133.1 billion.

Despite weak consumer sentiment, Universal Robina said it gained market share in branded consumer foods and recorded growth in its agro-industrial commodities.

Robinsons Land - Net income was down by 39% to P5.3 billion, while its top line dropped by 18% to P24.9 billion, primarily due to low foot traffic in malls and bookings in hotels.

Cebu Air - The airline business suffered a P22.2-billion loss, as revenues declined by 78%.

JG Summit Petrochemicals - It posted a net loss of P2 billion as revenues fell by 27% to P21.3 billion. 

The company said strict lockdowns heavily affected its operations.

Robinsons Bank - Net income grew 30% to P935 million, while revenues went up by 13% to P9.2 billion.

This was driven by an 8% increase in loans, as well as a P939-million gain from trading activities. – Rappler.com

Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.