Conglomerate Ayala Corp. booked P5.4 billion in first quarter net profit, down by 19 percent year-on-year, as the prolonged COVID-19 pandemic put a strain on the earnings contributions of its banking, property and water businesses.
Excluding nonrecurring items, Ayala’s first quarter core net income amounted to P7.2 billion, down by 9 percent year-on-year. Compared to the fourth quarter of 2020, Ayala’s core income grew by 5 percent, while the attributable net income declined by 7 percent.
“The challenges and prospects brought about by the pandemic is an opportune time to recalibrate Ayala’s portfolio strategy. In the next three years, we aim to sharpen the components of our portfolio to optimize returns and further strengthen our balance sheet. We will place greater emphasis on portfolio strategy with a sharper focus on optimizing returns from existing businesses and a disciplined process on capital deployment. In parallel, we will actively explore opportunities for value realization to fund future investments,” Ayala president and chief executive Fernando Zobel de Ayala said in a press statement on Friday.
The group’s earnings decline was tempered by higher contributions from Globe Telecom and AC Energy, which grew their three-month net profit by 11 percent and 24 percent year-on-year, respectively, to P7.3 billion and P2.4 billion.
Ayala’s group-wide revenues amounted to P52.27 billion, down by 2 percent year-on-year. —DORIS DUMLAO-ABADILLA