The country’s oldest business house Ayala Corp. boosted its net profit in the first quarter by 20 percent year-on-year to P6.9 billion on robust earnings from banking and real estate businesses.
Equity earnings from various businesses climbed 18 percent year-on-year to reach P8.5 billion, led by contributions from the Bank of the Philippine Islands and Ayala Land, which expanded 27 percent and 18 percent, respectively.
Ayala’s emerging businesses also posted higher equity earnings, particularly AC Energy and manufacturing vehicle AC Industrials, which expanded profit contribution by 26 percent and 22 percent, respectively.
“We are pleased to see our businesses sustain their positive performance in the first quarter. As a group, we continue to search for value-accretive opportunities not only to create new sources of financial growth, but also to remain relevant to our stakeholders. As our core businesses maintain their growth trajectories, we are encouraged by the progress of our emerging businesses. In particular, our power, infrastructure, and industrial technologies units are pursuing strategic opportunities to scale up and over time bring significant value to our portfolio,” Ayala president and CEO Fernando Zobel de Ayala said.
On its new businesses, the conglomerate reported that sustained operating efficiencies of power assets had pulled up AC Energy’s first quarter net profit by 25 percent year-on-year to P313.7 million. The growth was achieved despite the annual maintenance scheduled during the period for AC Energy’s conventional energy assets, South Luzon Thermal Energy Corp. and GNPower Mariveles.
The infrastructure business has likewise started contributing profits to the group. AC Infrastructure reported a net income of P9 million for the first quarter. AC Infrastructure is involved in three public-private partnership projects: Light Rail Transit 1, Muntinlupa-Cavite Expressway, and the Beep ticketing system.
AC Industrials recorded a P332-million net income, 22 percent higher than the previous year’s level and attributed to the robust performance of both its electronics manufacturing and automotive retail businesses.
In healthcare, Generika’s revenues grew by 10 percent year-on-year to P746.9 million driven by higher distribution and retail sales. As of the first quarter, Generika had a footprint of 684 stores nationwide. —DORIS DUMLAO-ABADILLa