JG Summit Holdings Inc., the investment company of tycoon John Gokongwei, earmarked P48.2 billion for 2017 capital expenditures, higher than P41.9 billion it spent in 2016, to expand operations of core businesses.
A presentation to investors uploaded on the company’s website showed JG Summit’s core subsidiaries, Universal Robina Corp., Robinsons Land Corp. and Cebu Air Inc., would raise their own funds for this year’s capex.
URC, the group’s food manufacturing unit, budgeted P7.2 billion to expand the capacities of existing facilities both here and abroad.
Property unit RLC allocated P16 billion to construct new malls, offices, hotels and land banking activities.
The balance will be used for fleet expansion of Cebu Air, operator of Cebu Pacific and Cebgo; operating and maintenance capex of the petrochemicals group; and the expansion and maintenance projects of Robinsons Bank Corp.
JG Summit said in the first quarter alone, it already spent P9.3 billion.
JG Summit said URC’s business would be weighed down by increased competition, rising costs of inputs and foreign exchange movement.
RLC will focus on investment portfolio as it remains conservative in terms of residential launches.
Cebu Air plans to optimize operations to adapt to current developments in the market, including using bigger planes and more hubs out of Manila.
JG Summit Petrochemicals targets to award the construction contract for the planned $650-million expansion of its petrochemical facility.
Meanwhile, Robinsons Bank looks to grow its core income, as it plans to launch debit and credit card businesses as well as its bancassurance venture.
JG Summit posted a 22-percent decline in net income in the first quarter to P7.5 billion from P9.6 billion in the same period last year.
First-quarter revenues climbed 11 percent in the first quarter to P67.5 billion, on the strong performance of petrochemical business.