MANILA, Philippines–Local property giant Ayala Land Inc. grew its net profit last year by 27 percent to a record-high P9.04 billion, exceeding market expectations, as all business segments sustained growth and enhanced operating margins.
“This is the third consecutive year that we achieved record growth and this is attributed to the exceptional performance of our key businesses since we launched our 5-10-15 strategic plan,” ALI president Antonino Aquino said in a press statement.
Under the company’s “5-10-15” strategy, ALI aims to achieve by 2014 (or five years from launch date), P10 billion in net income and a 15-percent return on equity. Analysts said ALI was now ahead of this target.
For 2012, ALI had also surpassed the market’s consensus estimate of about P8.7 billion in net profit.
“We spent a record high of over P71 billion for project and capital expenditures in 2012, a 138 percent jump year-on-year, as we aggressively pursued growth across our portfolio of products,” said Ayala Land Chief Finance Officer Jaime E. Ysmael.
“The bulk of this went to land acquisitions, including that of the FTI property in Taguig. For 2013, we have earmarked another P65.5 billion primarily for the completion of ongoing developments and launch of 69 new projects with a combined value of P129 billion, which will help sustain the company’s growth trajectory over the coming years,” Ysmael said.
For 2013, the Company is anticipating continued demand for residential products and will be launching around 31,000 units across all residential brands.