For its 2020 Annual Report, JG Summit Holdings, Inc. focused on the strength of its diversified portfolio, its business agility, and staying true to its purpose, key factors that have enabled the conglomerate to withstand the impact of the COVID-19 pandemic.
These highlights, which demonstrate how JG Summit’s leaders employed the “How to Win” and “Where to Play” strategies, as well as the agile steps taken to swiftly address shifting market demands and customer behavior, can now be viewed online here.
Other pertinent information, such as the conglomerate’s leadership and corporate governance structure, its response to the COVID-19 pandemic (both within the conglomerate and the communities it serves through various CSR programs), and other measures to transition smoothly into the new normal, are also available through the microsite.
In his report to shareholders, JG Summit President and CEO Lance Y. Gokongwei 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.”
For the report’s financial highlights, it reveals that JG Summit ended 2020 with consolidated core net income after taxes of Php450 million. The double-digit revenue growth in its banking and office segments, robust sales in food, and higher dividends from its telecommunications investment tempered the negative impact of the pandemic on the company’s overall operating results.
Despite the pandemic, JG Summit managed to significantly increase its total assets, up by 7.68% to Php 999.6 billion versus 2019’s Php 928.3 billion. It also successfully closed a 10-year US$600-million offshore bond issuance with a record low interest rate of 4.125% per annum, which upholds JGS’ credibility in the capital markets.
These encouraging results were achieved while safeguarding the health and welfare of JG Summit’s employees — the company’s “utmost priority” — according to Gokongwei.
He added that as JG Summit moved forward throughout the pandemic, it stayed true to the company purpose and continued to “provide better choices and the best value for our customers while ensuring business continuity and the exercise of prudence in liquidity and cost management.”
To lay down a strong foundation for the new normal, JG Summit continues to rely on four pillars, namely: sustained Leadership and People Development, accelerating its Digital Transformation journey, staying dedicated to Customer Centricity, as well as strengthening its commitment to greater Sustainability.
These will help address several critical issues mentioned by JG Summit Chairman James Go in his message to shareholders. “With the rapid shift in consumer behavior, we have to be agile in addressing the ever-changing needs of our customers. Thus, it is imperative that we embed strong customer-centric discovery and in-sighting processes as well as accelerate our digital transformation,” said Go.
Concerning the outlook for 2021, Gokongwei remains cautious, but optimistic. This was shaped not only by the conglomerate’s swift response to address COVID-19’s impact, but also to recent developments in the Government’s vaccination program, which the conglomerate has strongly supported. Recently, the nationwide vaccination drive has gradually picked up momentum — a “necessary must to jumpstart the economy towards the new normal,” according to Gokongwei, who expressed hope that it will unlock further acceleration and recovery in the near term.
To view the JG Summit 2020 Annual Report microsite, click here
