Ayala Group eyeing higher 2024 capital expenditures
THE Ayala Group is planning to allocate higher capital expenditures (capex) for 2024 compared to last year’s budget — estimated to be closer to P250 billion.
“On Ayala Group’s 2024 capex, we estimate the figure to be higher compared to Ayala Group’s 2023 capex,” Ayala Corp. told the stock exchange on Monday.
For the listed holding company alone, its 2024 budget is expected to be “flat” year-on-year. Ayala said it spent approximately P13 billion last year.
In a recent interview, Ayala Chief Finance Officer Albert de Larrazabal said the group would invest in new growth opportunities even as it remained “cautious.”
“A lot more capital is being allocated for the new areas we’re developing. Health care is one; logistics is the other. Then, more recently, we started to get into electric vehicles,” he said.
“We cannot afford to limit our perspectives to two years. When you think about the stuff we have to build, it takes three years before it gets up. So, we have to take a fundamental view.”
Ayala, through AC Motors, last August signed an agreement with Chinese conglomerate BYD Co. to become the official distributor of BYD vehicles in the country.
This year, the conglomerate is looking to raise up to $400 million from the planned sale of non-core stakes in Manila Water Co. Inc. and Light Rail Manila Corp. to complete a $1.0-billion fundraising target.
As of end-September 2023, Ayala’s net income surged to P44.68 billion from P35.32 billion on the back of higher contributions from units Bank of the Philippine Islands, Ayala Land, and ACEN Corp.
On Monday, Ayala Corp.’s share price was down by P5.50 to close at P703.50 apiece.