JG Summit 9-month profit hit by fuel cost hikes, forex losses

Insider Spotlight

• JG Summit Holdings' attributable net income declined 33 percent to P12.5 billion in the first nine months of 2026
• Consolidated revenue rose 8 percent to P291.5 billion, supported by food, property, and airline sales
• Cebu Pacific posted a P12.8-billion net loss as higher fuel costs and foreign exchange pressures weighed on earnings
  
  
  
  

JG Summit Holdings Inc. reported a 33-percent decline in attributable net income to P12.5 billion in the first nine months of 2026, as mounting losses at its airline business offset stronger earnings from food, property, and power investments.

Consolidated revenue from continuing operations increased 8 percent to P291.5 billion, with third-quarter growth accelerating to 10 percent from 7 percent in the first half.

Core net income fell 38 percent to P16.7 billion, primarily due to higher jet fuel costs and foreign exchange pressures affecting Cebu Pacific.

The airline recorded a P12.8-billion net loss despite a 10 percent increase in revenue to P96.2 billion. Passenger traffic grew 4 percent to nearly 21 million, while average fares rose 5 percent.

However, a 69-percent surge in average fuel prices drove a 44 percent decline in earnings before interest, taxes, depreciation, and amortization to P12.4 billion.

Robust portfolio

Excluding the airline, JG Summit's core net income would have increased 13 percent to P22.7 billion.

Universal Robina Corp. grew core net income 9 percent to P9.1 billion, supported by improving margins and lower financing costs.

Robinsons Land Corp. posted a 4 percent increase in net income to P10.6 billion, while JG Summit's share in Meralco's earnings climbed 22 percent to P11.6 billion.

Exposure to aviation costs

The results highlight the conglomerate's exposure to aviation costs despite improving profitability across its other businesses.

Consolidated cash increased 9 percent from year-end 2025 to P65.1 billion, while net debt reached P240.6 billion.

‘Weather the current challenges’

JG Summit president and CEO Lance Gokongwei said the group would prioritize selective pricing adjustments, cost management, and cash preservation.

“Our performance in the first nine months of 2026 demonstrates the resilience of our diversified portfolio. Against a backdrop of a challenging operating environment, the group managed to register faster revenue growth in the third quarter compared to the first half of the year … We expect these macroeconomic headwinds to continue, including the effect of El Niño on our different businesses,” he said in a press statement. 

“Our aim is to maintain our balance sheet strength, that will allow us to weather the current challenges as well as provide us opportunities to invest in value-accretive initiatives,” he added. —Vanessa Hidalgo | Ed: Corrie S. Narisma