Ayala’s 9-month net income up 70%

The conglomerate Ayala Corp. increased nine-month profit by 70% year-on-year to 19.4 billion pesos, one-time gains on top of higher profits from its banking, real estate, telecommunications, energy and water.

The country’s oldest business house has now generated 83.5% of the 23.21 billion pesos profit that Bloomberg’s market consensus expects for all of this year.

Excluding the impact of divestiture gains, increased provisions for bank loan losses, revaluation losses and the net retroactive effect of the Law on Business Recovery and Tax Incentives for Businesses ( CREATE), Ayala’s core profit was stable at 19.3 billion pesos in the nine-month period. Likewise, after deduction of the gains on disposal incurred in 2019, the basic net income corresponds to 83% of the pre-pandemic level of Ayala.

This year, profits were inflated by gains from the partial divestiture of the group’s thermal assets and the acquisition by AC Health of Qualimed Health Network.

In the third quarter alone, excluding the impact of extraordinary earnings, Ayala’s basic net income increased another 27% year-on-year to 6 billion pesetas, thanks to a higher contribution to the profits of its properties, telecommunications, energy, healthcare and venture capital. companies.

The group finalized the sale of 45 percent of its stake in the GN Power Kauswagan coal-fired plant in September. Gains from the divestiture totaled 3.5 billion pesos, including revaluation gains on retained interest.

“The improved business environment shows how organizations have adapted and readjusted more than a year after the start of the pandemic. With the accelerating pace of vaccination, we look forward to a further reopening of the economy and maintaining this positive trajectory, ”Ayala President and CEO Fernando Zobel de Ayala said in a disclosure. on the Philippine Stock Exchange.

Ayala’s three core businesses all performed better year over year in the nine-month period:

  • Ayala Land’s net income rose 35% to 8.6 billion pesos, as business operations continued to improve despite the reimposition of stricter quarantine restrictions;
  • BPI’s net profit improved 1.8% to 17.5 billion pesos due to lower loan loss provisions
  • Globe ‘Telecom’s net income increased 13% to 18 billion pesos thanks to improved gross service revenues, lower non-operating costs and the positive impact of the CREATE law which offset the increased operating expenses and depreciation.

Meanwhile, renewable energy arm AC Energy also posted nine-month net profit growth of 22% year-on-year to 4.3 billion pesos.

—DORIS DUMLAO-ABADILLA INQ

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