THE COUNTRY’S oldest conglomerate Ayala Corp. grew its first quarter net profit by 15 percent year-on-year to P5.8 billion, led by the strong growth of its real estate, power generation and automotive businesses.
Equity earnings contribution from the conglomerate’s business units reached P7.2 billion, 11 percent higher year-on-year, AC disclosed to the Philippine Stock Exchange on Thursday.
Ayala Land and Manila Water posted double-digit growth in equity earnings contribution, rising by 16 percent and 13 percent, respectively. Meanwhile, Ayala Automotive rebounded in the first three months of the year with equity earnings contribution expanding fivefold on the back of strong sales in the Isuzu and Honda brands while Volkswagen sales started to ramp up.
“As we conclude our medium-term plan this year and embark on a new five-year growth strategy, we are encouraged by the upbeat first quarter results of our businesses. We believe the Philippines continues to be fundamentally strong, and we expect most of our businesses to continue growing at a healthy pace,” Ayala president and chief operating officer Fernando Zobel de Ayala said.
Under the medium-term plan, AC seeks to double net profit its net profit to hit P50 billion by the year 2020 under a five-year vision that also seeks to expand its position across Southeast Asia.
On its power business, AC Energy sustained a positive earnings trajectory, generating a net income of P250 million in the first quarter as power projects achieved more efficient operating levels, the conglomerate said. AC Energy currently has around 650 megawatts in attributable capacity across its conventional and renewable investments. With financial close of the first unit of the 2×660 megawatt GN Power Diningin plant expected in the third quarter of this year, AC Energy is set to achieve its goal of assembling 1,000 megawatts of attributable capacity by the end of this year.
In transport, AC Infrastructure recorded net earnings of P23 million following its takeover of elevated railway LRT1 in September last year. AC Infrastructure currently has three public-private partnership projects in its portfolio – the 4-kilometer Muntinlupa-Cavite Expressway, the Beep ticketing system, and the extension and operations and maintenance of LRT1.
The publicly listed units under the Ayala group earlier reported net profits in the first quarter year-on-year as follows:
-Ayala Land registered a 14 percent growth in net income to P4.7 billion on the back of robust residential, office space sales, and commercial leasing segments and higher margins across all product lines.
-Globe Telecom’s net income rose by 3 percent to P4.3 billion, bolstered by gains across its data-related product segments;
-Bank of the Philippine Islands reported a net income of P5 billion, up by 1.3 percent year-on-year as its core lending business, non-interest income, and securities trading continued to improve;
– Manila Water posted a 3 percent growth in net income to P1.5 billion on improved East Zone operations, backed by strong topline growth of its domestic businesses; and,
– Integrated Microelectronics registered a net income of $6.5 million (or ₱311 million) in the first quarter, a 4 percent decline year-on-year. The company exited some of its low-margin consumer electronics businesses and discontinued products in the computing segment while ramping up its automotive and industrial products.