AYALA CORP. booked a 96.16% increase in its third-quarter (Q3) attributable net income to P22.91 billion, up from P11.68 billion a year earlier.
In a statement on Thursday, the listed conglomerate said core net income went up 4% year on year to P12.8 billion, fueled by stronger contributions from Bank of the Philippine Islands (BPI) and Ayala Land, Inc. (ALI), alongside support from the company’s portfolio businesses, including AC Health, Inc., AC Logistics, Inc., Integrated Microelectronics, Inc. (IMI), and iPeople, Inc.
“While gross domestic product growth has slowed somewhat, our core businesses remain steady, and our portfolio businesses continue to improve. Our recently announced initiatives in retail, Makro and Spinneys, signify continued confidence in the long-term growth trend of the Philippine economy,” Ayala Chief Executive Officer Cezar P. Consing said.
Ayala’s core net income, excluding one-time items, remained stable year on year at P36.6 billion.
For the first nine months, Ayala’s reported attributable net income rose by 36.22% to P46.27 billion, mainly due to one-time gains from revaluing AC Ventures, which holds Ayala’s direct stake in Mynt. A remeasurement gain was recorded, according to the company, due to Mitsubishi’s acquisition of a 50% stake in AC Ventures, which resulted in indirect ownership of Mynt.
ALI, BPI, Globe Telecom, Inc., and AC Energy (ACEN) reported mixed results in the January-to-September period, with BPI and ALI posting net income growth, while Globe and ACEN saw declines due to lower revenues and higher expenses.
BPI’s net income increased by 5% to P50.5 billion, driven by solid loan growth and an expanding net interest margin (NIM). Return on equity stood at 15%.
Ayala Land’s net income also rose 1% to P21.4 billion, supported by stable property development revenues and steady performance in its leasing and hospitality operations.
Meanwhile, Globe’s core net income fell 12% to P15.5 billion due to lower gross service revenues and higher expenses, while ACEN’s core net income dropped 18% to P4.3 billion because of wind farm damage, weaker market prices, and new depreciation costs.
ACEIC, ACEN’s parent, saw a 59% net income decline to P4.2 billion, pressured by lower contributions from ACEN and thermal plants along with reduced net interest income at the parent level.
AC Health narrowed its net loss from P417 million to P9 million, driven by strong provider business performance, a P103-million gain from selling KMD shares, no KMD losses, and an earnings before interest, taxes, depreciation, and amortization increase from P460 million to P1.02 billion.
ACMobility posted a net income of P18 million, reversing a P176 million loss last year, due to higher volume that cut losses in distribution and dealerships.
IMI posted a net income of $14.8 million, reversing a $9.2-million loss last year, due to improved operational efficiency from restructuring and higher facility utilization rates.
Ayala Corp. shares fell by 0.05% or 20 centavos to P420.80 apiece on Thursday. — Alexandria Grace C. Magno