JG Summit posts 27-pct revenue decline in 2020 as pandemic disrupts business

ABS-CBN News

Posted at Mar 31 2021 11:34 AM

MANILA - JG Summit Holdings Inc said Wednesday its consolidated revenues declined by 27 percent in 2020 but it has remained resilient due to its portfolio and agile response to the COVID-19 pandemic impact. 

Its core net income reached P450 million in 2020 while consolidated revenues for the full year reached P221.6 billion, 27 percent lower than the previous year, JG Summit said in a disclosure to the stock exchange.

Banking and office segments, robust food sales and higher dividends from telco investments "tempered" the negative impact of COVID-19 on overall operating results, it said. 

Cebu Pacific, its air transport business, "was severely impacted" by flight restrictions, while its petrochemical unit saw lower sales, JG Summit said.

Cebu Pacific on Tuesday said it posted P22.2 billion in net loss last year. 

Earnings in other core investments also declined year-on-year. 

Expansions in its food and banking units also provided some buffer to offset profit declines in other businesses, it said.

"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," JG Summit President and CEO Lance Gokongwei said.

Gokongwei said the pandemic accelerated their multi-year transformation program. The company will continue to invest in "necessary assets and capabilities" to sustain the business, he said.

Moving forward, JG Summit will provide the "best value" for customers even with COVID-19 still in the picture, while exercising prudence in liquidity and cost management to ensure business sustainability, he said. 

Universal Robina Corp, Robinsons Land Corp, Cebu Air, JG Summit Petrochemicals Group and Robinsons Bank are part of the JG Summit portfolio.

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