Conglomerate Ayala Corp. said Thursday net income increased 11 percent in 2019 to P35.3 billion from P31.8 billion in 2018 level as the divestment gains from thermal assets and education business offset the huge re-measurement loss of Manila Water and losses from manufacturing business.
Ayala said in a disclosure to the stock exchange it booked divestment gains of P23.6 billion from AC Education and AC Energy. It also recorgnized an P18.1-billion re-measurement loss for its interest in Manila Water and a P2.4-billion net loss from AC Industrials.
“The events of the past year have challenged the stability of our corporate momentum over the last decade. However, Ayala has proven its resilience across multiple business cycles over the 186 years that we have been in operation,” Ayala Corp. chairman and chief executive Jaime Augusto Zobel de Ayala said.
“This ability to deal with adversity has been built on our fundamental strengths of adhering to the highest standards of corporate governance, always looking to develop value over the long term, remaining flexible to adjust to changing circumstances and constantly aligning our business objectives with the broader development needs of the country. These fundamental values have stood us in good stead through the years, have defined Ayala as a successful multi business group and ensured its continuity and relevance throughout the years,” he said.
Ayala Corp. president and chief operating officer Fernando Zobel de Ayala said while the company’s water and global manufacturing businesses faced challenges in 2019, its real estate, banking, telco and power units continued to provide strong growth for the company.
Ayala Land’s net income grew 13 percent to P33.2 billion as its office and commercial and industrial lot sales and a growing leasing operations supported earnings expansion. Total revenues increased by 2 percent to P168.79 billion
Bank of the Philippine Islands also reported a 25-percent jump in net income in 2019 to P28.8 billion as revenues grew 20 percent to P94.3 billion.
Globe Telecom ended 2019 with a profit of P22.3 billion, up 20 percent year-on-year boosted by data-related products and services. Total service revenues went up 12 percent to P149 billion, lifted by data-related services which accounted for 71 percent.
AC Energy also registered net profit of P24.6 billion in 2019, lifted by contribution from solar projects in Vietnam, recovery of costs incurred from adjustments in the construction and operations of power plants and gains from the partial divestment of its thermal assets.
Manila Water reported a 16-percent year-on-year decline in net income to P5.5 billion as the water supply shortage in March 2019 severely impacted the East Zone concession while some cost-side challenges also weighed down on profitability.
AC Industrials also recorded a net loss of P2.4 billion as headwinds in both the electronics manufacturing services and the global auto industries hampered earnings across several business lines.
The conglomerate recently started a P10-billion buyback program, reflecting its long-term optimism in the company amid challenging market conditions.