Ayala net income falls 17% to ₱6.7 B in Q1

Ayala Corporation reported a 17 percent drop in net income to ₱6.7 billion in the first quarter of the year as the COVID- 19 health crisis affected the performance of most of its business units.

In a disclosure to the Philippine Stock Exchange, the firm said that, isolating the estimated impact of the health crisis, Ayala’s net income was flat from its year-ago level, which included the ₱1 billion divestment gains from the merger of AC Education with iPeople.

Ayala’s core businesses Ayala Land and Bank of the Philippine Islands recorded weak results on the impact of governmentmandated Enhanced Community Quarantine protocols, which took effect last March 16.

Other core pillars Globe and AC Energy held steady during the period as telco and power generation continued to operate during the quarantine albeit on skeleton staffing.

AC Industrials registered a net loss on the impact of governmentmandated shutdown of its facilities in China and market disruptions in the global supply chain in manufacturing.

“This unprecedented health crisis has resulted in a radical transformation of societies, economies, and businesses, including the Ayala group,” Ayala President and COO Fernando Zobel de Ayala said.

He noted that, “While the outlook for the business environment has fundamentally changed as a result of this crisis, we take comfort in the fact that we have always maintained a strong balance sheet that provides us with flexibility as we navigate the uncertainties.”

Ayala Chairman and CEO Jaime

Augusto Zobel de Ayala noted that, "As we anticipate the reopening of business operations, it is imperative that we strike a balance between productivity and the health of our employees. With this in mind, we have put in place a health protocol to ensure the re-entry of our workforce in a safe and productive way.”

Ayala Land’s total revenues and net income contracted 28 percent to ₱28.4 billion and 41 percent to ₱4.3 billion, respectively in the first quarter of 2020 as the COVID-19 ECQ impacted its business operations.

BPI’s net earnings declined five percent to ₱6.4 billion in the period as a result of the bank’s aggressive stance in provisionining.

Globe’s net income ended 2 percent lower at ₱6.6 billion due to an increase in depreciation from network investments made and non-operating charges.