JG Summit Holdings Inc., the listed holding company of the Gokongwei Group, said Monday it expects its 2024 capital expenditures (capex) to exceed the previous year’s level of P98.9 billion as its airline business expands its fleet.
JG Summit president and chief executive Lance Gokongwei said during the company’s annual stockholders meeting this year’s capex would also likely surpass the initial budget of P87.2 billion.
“While we initially budgeted P87 billion in capital expenditures for 2024, we are anticipating additional deliveries for Cebu Pacific which may put our total 2024 spending above 2023 level,” Gokongwei said.
Cebu Pacific is expected to acquire 18 new aircraft this year to end 2024 with a total of 93 aircraft.
Gokongwei said Cebu Pacific is anticipating a gradual pickup in domestic leisure travel and traffic on key OFW (overseas Filipino workers) routes, which is expected to result in 12-percent to 15-percent growth in full-year seat capacity.
He said that aside from the expansion of its airline business, the group’s core real estate and food manufacturing are also expanding to increase their capacity and footprint.
Gokongwei said Universal Robina Corp. (URC) is developing a mega manufacturing facility in Malvar, Batangas, with the first production line scheduled to be operational before end-2024.
He said URC would continue delivering mid-to-high single-digit revenue growth this year, driven by volumes along with profits expanding faster than revenues.
Robinsons Land Corp. (RLC) is also increasing the leasable area for its mall business with the opening of Opus Mall and Robinsons Pagadian this year.
RLC also plans to expand NUSTAR hotel in Cebu with addition of new rooms by the fourth quarter. These expansion plans will enable RLC to sustain its double-digit profit growth and boost its net sales take-up.
“While we remain cautious given short-term headwinds from elevated fuel prices, interest and forex rates, we continue to work hard to accelerate recurring core profits in succeeding quarters, with these advancements across the group,” Gokongwei said.
“We hope to remain ahead of the curve as we continue our commitment to providing our customers with better choices and create shared success to all our stakeholders,” he said.
