Ayala improves profit by 10% to P7.7 billion

MANILA, Philippines — Conglomerate Ayala Corp. improved its profitability by 10 percent in the first quarter behind higher earnings from its real estate and power units.

Ayala’s net income in the first three months rose to P7.7 billion, while equity earnings from the group’s business units grew nine percent to reach P9.2 billion.

“The sustained growth momentum in our portfolio reflects the progress we have made in our long-term diversification strategy to establish new pillars of growth and expand into new markets,” Ayala president and COO Fernando Zobel de Ayala said.

“While we remain positive about the domestic environment and the concentration of our investments will continue to be in the Philippines, we are establishing a growing presence regionally and globally in sectors where we can bring our expertise and capital as opportunities arise,” Zobel said.

The conglomerate’s property unit, Ayala Land, sustained its earnings momentum in the first quarter, with net income climbing 17 percent to P6.5 billion from a year ago, driven by its residential and commercial leasing segments.

Profits of its energy business through AC Energy, meanwhile, nearly doubled during the period to P593 million, boosted by robust contributions of its Indonesia investment and thermal and renewable platforms.

Other business units also performed well during the three-month period, including Globe Telecom Inc. which reported a net income of P4.7 billion.

Manila Water’s first-quarter net profit jumped 17 percent to P1.7 billion on improved performance of the Manila concession and domestic business units, combined with lower depreciation expense.

Bank of the Philippine Islands’ net income, meanwhile, stood flat at P6.2 billion as lower non-interest income offset the improvement in the bank’s core banking business.

Despite strong topline growth of both its electronics manufacturing and vehicle retails segments, a one-off expense and startup costs of new acquisitions weighed down AC Industrials’ net income, which fell 36 percent to P217 million in the first quarter.

“Ayala’s balance sheet remains healthy with ample capacity to undertake investments as well as cover its dividend and debt obligations,” the group said.