Ayala earnings rise 10% to P35.3 billion

MANILA, Philippines — Ayala Corp., the country’s oldest conglomerate, posted a net income of P35.3 billion in 2019, up 10 percent from the previous year.

Revenue increased by four percent to P295.2 billion.

Ayala president and chief operating officer Fernando Zobel de Ayala said the company’s real estate, telco and power units continue to perform well.

Ayala Corp. chairman and chief executive officer Jaime Augusto Zobel de Ayala said the company remains resilient despite the challenges.

“Notwithstanding the challenges faced by our water and global manufacturing businesses in the past year, our real estate, banking, telco, and power units continue to serve as engines of growth. This validates the strength of a diversified portfolio and the expansion strategy we put in place a decade ago,” he said.

Among the growth drivers were Ayala Land, which posted a net income of P33.2 billion, up 13 percent as its office and commercial and industrial lot sales and a growing leasing operations supported earnings expansion.

 “The events of the past year have challenged the stability of our corporate momentum over the last decade. However, Ayala has proven its resilience across multiple business cycles over the 186 years that we have been in operation.

“This ability to deal with adversity has been built on our fundamental strengths of adhering to the highest standards of corporate governance, always looking to develop value over the long term, remaining flexible to adjust to changing circumstances and constantly aligning our business objectives with the broader development needs of the country. These fundamental values have stood us in good stead through the years, have defined Ayala as a successful multi business group and ensured its continuity and relevance throughout the years,” he said.

In 2019, Ayala Corp. subsidiary Manila Water and its concession contract with the government became the subject of relentless attacks from President Duterte who vowed to destroy the country’s oligarchs.

Bank of the Philippines grew its net earnings 25 percent to P28.8 billion, while revenue rose 20 percent to 94.3 billion.

Globe, another growth engine, also grew its net income to P22.3 billion, up 20 percent, boosted by the data-related products and services.

AC Industrials, meanwhile, recorded a net loss of P2.4 billion on the back of slower electronics manufacturing and auto industries.