Gokongwei family-led conglomerate JG Summit Holdings is shifting into defense mode as rising fuel prices, peso weakness and geopolitical tensions begin pressuring margins across the Gokongwei group despite resilient travel and consumer demand.
Core net income shed 8 percent to P6.9 billion in the first quarter even as revenues rose 7 percent to P99.9 billion and operating profit climbed 9 percent to P17.1 billion, supported by record airline passenger volumes, resilient food sales and stronger residential revenues.
Reported net income, however, rose 19 percent to P5.2 billion after losses from its discontinued petrochemical business narrowed significantly.
"We are not immune to the headwinds facing our portfolio and the broader economy. What we can control, we are managing closely — implementing austerity measures to drive cost discipline, adjusting prices in a measured manner, maintaining balance sheet strength, and keeping operational focus sharp," JG Summit president and CEO Lance Gokongwei said in a statement on Wednesday.
"We remain committed to protecting long-term value for our shareholders while being realistic about the near-term environment," he added.
Gokongwei tightens controls
“That said, we are now navigating a period of heightened geopolitical and macroeconomic uncertainty. Rising fuel costs and peso depreciation are creating dual pressures — compressing margins while simultaneously weighing on consumer purchasing power,” Gokongwei added.
He said Cebu Air, Inc. is prioritizing route profitability over aggressive expansion, while Universal Robina Corporation has activated contingency measures against rising input costs and possible demand softness.
JG Summit is also implementing austerity measures, selective price increases and tighter capital allocation across the portfolio while focusing on preserving balance sheet strength and financial flexibility.
JG Summit shares last traded at P26.40 each, up 2.92 percent, which added to gains of about 11.6 percent so far in 2026.
Airline, food still hold up
Cebu Pacific carried a record 7.5 million passengers during the quarter, lifting revenues 10 percent to P33.3 billion, although the airline still posted a P400 million net loss from foreign exchange losses tied to its dollar-denominated debt.
URC grew revenues 6 percent to P47.9 billion as branded consumer demand stayed resilient and market share improved across all six Philippine categories, although higher freight costs linked to the Middle East conflict and softer sugar prices pressured margins.
Property and investments steady
Robinsons Land Corporation posted 11 percent revenue growth to P12.2 billion as office occupancy rose to 86 percent and mall occupancy improved to 94 percent, outperforming broader industry averages.
Meanwhile, equity earnings from Meralco rose 4 percent to P2.8 billion driven by stronger liquefied natural gas and solar operations, while dividend income from PLDT Inc. weakened following lower dividend declarations.
Despite the tougher environment, JG Summit said its balance sheet remains healthy with debt-to-equity at 0.73 and net debt-to-equity at 0.55, helping support a 7 percent increase in cash dividends to P0.45 per share as the conglomerate braces for a more volatile second half.
—Edited by Miguel R. Camus
