Ayala Corporation reported a 70 percent leap in net income to P19.4 billion in the first nine months of the year on improved performance of most of its business units.
In a disclosure to the Philippine Stock Exchange, the firm said “The strong performance was boosted by gains from the partial divestment of the group’s thermal assets and AC Health’s acquisition of Qualimed Health Network earlier in the year.”
Ayala’s core net income, which isolates the effect of divestment gains, higher loan loss provisions, remeasurement losses, and the net retroactive effect of the CREATE law, was flat at P19.3 billion during the nine-month period.
Likewise netting out divestment gains incurred in 2019, core net income translates to 83 percent of Ayala’s pre-pandemic level. Ayala’s nine-month revenues grew 19 percent to P182.5 billion year-on-year, led by improvements from Ayala Land, Globe Telecom, AC Energy, and AC Industrials.
In the third quarter alone, stripping out the impact of the gains, Ayala’s core net income still grew 27 percent to P6 billion, driven by higher contributions from Ayala Land, Globe, AC Energy, AC Health, and AC Ventures.
The group completed the sell-down of 45 percent of its stake in the GN Power Kauswagan coal facility in September. Gains from the divestment totaled P3.5 billion, including remeasurement gains on the retained interest.
“The improving business environment demonstrates how organizations have adapted and readjusted themselves more than a year into the pandemic. With the pace of inoculation ramping up, we look forward to a further reopening of the economy and sustaining this positive trajectory,” said Ayala President and CEO Fernando Zobel de Ayala.
Ayala Land registered a net income growth of 35 percent to P8.6 billion, as business operations continued to improve despite the reimposition of stricter quarantine restrictions.
Bank of the Philippine Island’s net income increased 1.8 percent to P17.5 billion due to lower loan loss provisions while Globe’s net income increased 13 percent to P18 billion as gross service revenue improvement, lower non-operating charges, and the positive impact of the CREATE law fully covered higher operating expenses and depreciation.
AC Energy (ACEN) posted a net income growth of 22 percent to P4.3 billion on strong power demand in Luzon and increased operating capacity while Manila Water’s net income grew six percent to P3.4 billion, mainly due to the absence of provisions and adjustments made in the same period last year.
AC Industrials significantly narrowed its net losses from P2.1 billion to P1.2 billion due to better results across its subsidiaries, including IMI and AC Motors.
Source: Manila Bulletin (https://mb.com.ph/2021/11/12/asset-sale-boost-ayala-corp-earnings/?utm_source=rss&utm_medium=rss&utm_campaign=asset-sale-boost-ayala-corp-earnings)
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