Gokongwei-led JG Summit Holdings Inc. saw its profit crash by 70.5% to P1.9 billion, crippled by lower earnings from the airline business as well as massive forex and trading losses arising from chaotic financial markets.
Budget carrier Cebu Pacific was heavily affected by the impact of the coronavirus pandemic which led to the complete groundling of all flights beginning March 19 as a result of the lockdown measures implemented by the government to contain the spread of the virus.
JG Summit recognized P2.05 billion in market valuation and foreign exchange losses. Consolidated revenues tanked by 9.7% P67.9 billion, weighed down by lower contributions from the food and petrochemical businesses.
The significant growth in property and banking revenues has cushioned the negative impact of the pandemic.
JG Petrochemicals Group reported a 71% drop in revenues to P2.78 billion due to ower average selling prices and volumes.
Lance Gokongwei, president of JG Summit, said the travel restrictions and the stricter social distancing measures mid-March resulted in the closure of Robinsons malls and hotels, disruption in food unit’s supply chain and delays in the expansion of the petrochemicals business.
“The situation has driven us to review our current business and operating models to adapt to the new normal as we predict shifts in the way consumers buy/use our products and services. We are also now in the process of accelerating our digital transformation to further deliver value and improve customer experience, as well as to provide a digital workplace for our employees.
With the strength of our balance sheet and the diversity of our portfolio, we expect to weather the COVID-19 situation and we hope to emerge stronger,” Gokongwei said.