Conglomerate earmarks P249-B capex for 2018
DOUBLE-DIGIT growth in its property and power businesses bolstered Ayala Corporation’s 2017 profit by 16 percent to P30.3 billion from P26 billion in 2016.
The conglomerate said in a disclosure that equity earnings contributions from its business units reached P35.8 billion. Of this amount, Ayala Land, Inc. and AC Energy Holdings accounted for 21 percent and 30 percent, respectively.
Ayala Land’s net income surged 21 percent to P25.3 billion in 2017 driven by strong growth in property sales and leasing income. Revenues increased by 14 percent to P142.3 billion amid substantial bookings, the completion of property projects and expansion in its leasing business.
AC Energy’s net profit soared 31 percent to P3.5 billion in 2017, spurred by solid contributions from its wind energy assets.
Banking arm Bank of the Philippine Islands (BPI) recorded net income of P22.4 billion last year, up 1.7 percent from 2016. Excluding one-off gains from the sale of securities in 2016, BPI’s net income grew 31 percent in 2017. Revenues were up 7 percent at P71 billion.
Technology arm AC Industrial Technology Holdings, Inc. posted net income of P1.2 billion, up 4 percent, on the improved performance of its electronics manufacturing and vehicle retail units.
Water business Manila Water Co. Inc. reported net income growth of 1 percent to P6.2 billion as higher operating expenses and business development costs tempered revenues, which grew 5 percent to P18.5 billion.
Globe Telecommunications saw net profit drop 5 percent to P15.1 billion due to higher operating expenses and depreciation charges as a result of increased investments in its data network. However, revenues grew by a healthy 7 percent to P71 billion.
Ayala said its infrastructure arm AC Infrastructure Holdings Corp. is pursuing opportunities to expand its portfolio in the transport and infrastructure space. AC Infrastructure is part of the so-called “Super Consortium” that is bidding for the rehabilitation the Ninoy Aquino International Airport.
In healthcare, AC Healthcare Holdings, Inc. continues to scale up its platforms in retail pharmacy and primary care. Generika, its retail network of affordable quality generic medicines, recorded P3.3 billion in revenues, up 15 percent from the previous year, as its total store count increased by 100 to 750 outlets in 2017. AC Health is targeting to further increase this to 850 by the end of 2018.
Ayala Corp. set a capital expenditure program of P249 billion this year, up 44 percent from last year, to finance growth strategies of its property, telecommunications, and water units.
At the parent level, Ayala is allocating P51.8 billion to fund its subscription to BPI’s stock rights offering and its investments in AC Energy, AC Industrials, AC Education, and AC Health.