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, the firm disclosed to the Philippine Stock Exchange on Thursday.
Ayala Land and Manila Water each 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 five-fold on the back of strong sales in the Isuzu and Honda brands and with Volkswagen sales starting to pick 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 its medium-term plan, Ayala Corp. seeks to double its net profit to P50 billion by the year 2020. The firm’s five-year vision 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 the expected financial close of the first unit of the 1,320-megawatt GN Power Diningin plant 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.