Ayala posts 17% hike in 2016 profit

MANILA, Philippines - Ayala Corp., the coun­try’s oldest conglomerate, reported a net income of P26 billion last year,17 percent higher than the previous year, putting the company on track to hitting its P50 billion profit goal by 2020.  In a briefing yesterday, AC chief finance officer TG Limcaoco attributed the company’s 17 percent income growth to double digit growth contributions of its real estate and banking units, boosted by its emerging businesses in power and industrial technologies.

AC president and COO Fernando Zobel de Ayala said the company capped its five-year strategic target in 2016 with net income expanding nearly threefold and a 23 percent compounded annual growth rate.

“We believe this was achieved through our disciplined execution and a strong domestic environment,” Zobel said.

 Limcaoco said the company would remain on the lookout for opportunities in the digital and e-commerce space and may invest up to $100 million including its recent acquisition of a 49 percent stake in online fashion retailer Zalora Philippines.

ALI  posted a net income of P20.9 billion, up 19 percent while Bank of the Philippine Islands recorded a 21 percent growth in profit to P22.1 billion on the back of solid gains from the bank’s core banking, transactional, and bancassurance businesses.

Globe, meanwhile, reported  a four percent drop in profit due to higher operating and depreciation expenses from its recent strategic acquisitions.

Manila Water saw its net income slightly go up to P6.1 billion on improved performance of the Manila concession combined with higher contributions from its businesses outside Metro Manila.

For the new businesses, such as industrial technologies, net income grew 29 percent to P1.8 billion.

Early last year, Ayala set up AC Industrials to house the group’s investments in industrial technologies, namely Integrated Micro-Electronics and AC Automotive, to take advantage of opportunities in emerging trends in the global manufacturing.

IMI posted a net income of $28.1 million, down two percent year on year owing to transaction and financing costs related to strategic acquisitions and foreign exchange headwinds from the Chinese Renminbi.