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 yr earlier.
In a press release on Thursday, the listed conglomerate said core net income went up 4% yr on yr to P12.8 billion, fueled by stronger contributions from Bank of the Philippine Islands (BPI) and Ayala Land, Inc. (ALI), alongside support from the corporate’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 regular, and our portfolio businesses proceed to enhance. Our recently announced initiatives in retail, Makro and Spinneys, signify continued confidence within 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 yr on yr at P36.6 billion.
For the primary nine months, Ayala’s reported attributable net income rose by 36.22% to P46.27 billion, mainly resulting from one-time gains from revaluing AC Ventures, which holds Ayala’s direct stake in Mynt. A remeasurement gain was recorded, in response to the corporate, resulting from 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 leads to the January-to-September period, with BPI and ALI posting net income growth, while Globe and ACEN saw declines resulting from lower revenues and better 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 regular performance in its leasing and hospitality operations.
Meanwhile, Globe’s core net income fell 12% to P15.5 billion resulting from lower gross service revenues and better expenses, while ACEN’s core net income dropped 18% to P4.3 billion due to wind farm damage, weaker market prices, and latest 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 together with reduced net interest income on 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 yr, resulting from 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 yr, resulting from improved operational efficiency from restructuring and better facility utilization rates.
Ayala Corp. shares fell by 0.05% or 20 centavos to P420.80 apiece on Thursday. — Alexandria Grace C. Magno