Ayala Corporation, the country’s oldest conglomerate, reported a 55 percent jump in core net income to P20.5 billion in the first half of 2023, anchored by solid contributions from Bank of the Philippine Islands, Ayala Land, and ACEN Corporation.
In a disclosure to the Philippine Stock Exchange, the firm said its strong earnings momentum pushed core earnings 38 percent ahead of pre-COVID levels. However, including one-off items, Ayala’s attributable net income was up by 13 percent to P18.4 billion from P16.3 billion.
“Strong results from BPI, Ayala Land, and ACEN compensated for the one-off provisions booked by AC Industrials,” Ayala President and CEO Cezar P. Consing said.
Ayala recognized a one-time loss of P2.4 billion after subsidiary Integrated Micro-Electronics Inc. and minority shareholders of STI Enterprises Limited sold their respective 80 percent and 20 percent shareholdings in STI to Rcapital.
Consing noted that, “for the balance of the year, we will build on our solid first half results and continue to recycle capital wherever it makes sense to do so.”
BPI’s net earnings grew 23 percent to P25.1 billion driven by average asset base expansion, margin growth, and reduced provisions.
Ayala Land’s net income jumped 41 percent to P11.4 billion as its property development and commercial leasing businesses registered higher revenues.
ACEN’s net income soared 94 percent to P4.2 billion due to higher net generation from a stronger wind regime and increased operating capacity that enabled a shift to a net selling merchant position.
AC Energy & Infrastructure, the parent company of ACEN, grew its profit 2.6 times to P6.9 billion due to improved contributions from ACEN and GN Power Dinginin and a gain from the full divestment of GN Power Kauswagan.
Globe Telecom’s net income was down 27 percent to P14.4 billion mainly due to a one-time gain from the partial sale of its data center business being registered last year and higher OPEX, offsetting a two percent growth in gross service revenues.
Ayala continues to build its electric vehicles ecosystem as AC Health and AC Logistics also continue to build their respective ecosystems.
AC Health completed the integration of its hospitals and clinics brands under the Healthway Medical Network in July while The Healthway Cancer Care Center is set to open year-end and be the country’s first dedicated cancer hospital.
AC Logistics’ restructuring initiatives include the mergers of its waste management assets, IWMI and WARM, and its freight forwarding businesses under AIR21 Holdings and Entrego.
The firm aims to double the amount of waste processed for the Ayala Group and will construct materials recovery facilities in multiple Ayala Land locations such as Nuvali and El Nido.
If you like this article, share it on social media by clicking any of the icons below.
Or in case you haven’t subscribed yet to our newsletter, please click SUBSCRIBE so you won’t miss the daily real estate news updates delivered right to your Inbox.
The article was originally published in Manila Bulletin and written by James A. Loyola.
About Post Author
More Stories
Banks’ total assets up at P26.2 trillion end-June
Lamudi sees heightened developer confidence with rise in ad spending
Phase 1 of PHINMA’s Bacolod township to finish by next year