AYALA Corp., the country’s oldest conglomerate, said its net income for the first three months of 2017 grew 20 percent to P6.9 billion, buoyed by its banking and real estate businesses as well as the solid earnings of its emerging businesses in power and industrial technologies.
In a disclosure to the Philippine Stock Exchange (PSE) on Thursday, Ayala Corp. said strong equity earnings from its businesses, which climbed 18 percent year-on-year to reach P8.5 billion, lifted the conglomerate’s performance during the period.
This was led by equity earnings from the Bank of the Philippine Islands (BPI) and Ayala Land, Inc. (ALI) which grew by 27 percent and 18 percent, respectively.
In addition, the equity earnings contribution from its emerging businesses AC Energy and AC Industrials climbed 26 percent and 22 percent, respectively.
“We are pleased to see our businesses sustain their positive performance in the first quarter,” said Fernando Zobel de Ayala, president and chief operating officer of Ayala Corp.
“As our core businesses maintain their growth trajectories, we are encouraged by the progress of our emerging businesses,” he added.
ALI registered 18 percent growth in net income to P5.6 billion on the continued expansion of its property development and commercial leasing businesses while BPI reported 26 percent growth in net income to P6.3 billion, buoyed by the consistent performance of its core lending business.
However, Globe Telecom Inc.’s net income fell 13 percent to P3.8 billion as costs related to the strategic acquisition of San Miguel’s telecom assets weighed on earnings. Stripping off the impact of such costs, Globe’s normalized net income declined by only four percent.
Also due to higher costs from new investments and expansion initiatives, Manila Water posted a 2 percent decline in net earnings to P1.4 billion in the first quarter. But consolidated revenues rose 3 percent to P4.4 billion on a slight increase in billed volume during the period.
AC Industrials recorded net income of P332 million in the first quarter, up 22 percent from a year ago, on the robust performance of both its electronics manufacturing and automotive retail businesses.
AC Energy generated net income of P313.7 million in the first three months, up from P250 million last year, as its power projects achieved more efficient operating levels.
AC Infrastructure reported a net income of P9 million and continues to optimize the operations of its three public-private partnership projects, Ayala Corp. said.
In healthcare, Generika’s revenues grew 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.
AC Health’s full-service primary care community clinics, FamilyDOC, served close to 21,000 unique patients as of the first three months. To date, AC Health operates six FamilyDOC clinics in the southern Greater Manila Area. FamilyDOC targets to open 18 new clinics this year, with the expansion to commence in July.