Ayala Corporation, the country’s oldest conglomerate, reported a 61 percent surge in core net income to a record P9.4 billion in the first quarter of 2023 to top pre-pandemic levels.
In a disclosure to the Philippine Stock Exchange, the firm said that, including one-offs, net income was up 31 percent to P10.2 billion as growth momentum from the previous quarter was sustained as most key businesses delivered strong earnings.
Bank of the Philippine Islands’ net earnings were up 52 percent to P12.1 billion mainly due to average asset base expansion, sustained margin growth, and lower provisions.
Ayala Land’s net income grew 42 percent to P4.5 billion as its diversified portfolio generated a 26 percent revenue growth on higher contributions across its business lines.
Globe’s core net income was flat at P5.1 billion as higher depreciation expenses offset the rise in data and digital service revenues.
ACEN’s net income was up 5 times to P2 billion resulting from higher net generation from wind sources, the commissioning of new power plants, and the company’s shift to a modest net selling merchant position.
AC Energy & Infrastructure, the parent company of ACEN, grew its profit by 2.5 times to P2.7 billion due to improved contributions from ACEN and recognition of pre-operating revenues from GN Power Dinginin.
“One of our priorities is to end 2023 with profits above pre-COVID levels. Given our first quarter results, our constructive outlook for the year remains intact,” said Ayala President and CEO Cezar P. Consing.
Ayala said it continues to make strides in its emerging businesses, AC Health and AC Logistics.
AC Health launched its new KonsultaMD superapp in March and KMD’s revenues and ARPU (average revenue per unit) doubled in the first quarter of 2023 versus the same period last year.
AC Logistics’ efforts to integrate its portfolio of assets have begun to bear fruit. It has started the integration process with AIR21’s last mile assets.
AIR21’s Direct Contribution Margin has also improved seven percentage points in the first quarter of 2023 compared to the same period last year.
AC Logistics is scheduled to open its first cold storage facility in Cagayan de Oro within the year. The 5,000-pallet facility is through a joint venture with one of the largest pure cold storage players in the country, Glacier Megafridge.
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The article was originally published in Manila Bulleting and written by James A. Loyola.
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