Ayala Corp. posts ₱10.4-B net profit, up 31%, in H1

Ayala Corporation, the country’s oldest conglomerate, reported a 31 percent hike in net income to ₱10.4 billion in the first semester of 2021 from the low base of the previous year when the metropolis was under a higher quarantine status.

In a disclosure to the Philippine Stock Exchange, the firm said the improved results of its business units supported its earnings during the period.

Meanwhile, Ayala’s core net income, which isolates the effect of various provisions, remeasurement losses, the CREATE law as well as divestment gains booked in 2019, decreased eight percent to ₱13.3 billion in the first half of the year compared to the same period last year.

This is equivalent to 90 percent of Ayala’s pre-pandemic level.

Ayala’s diversified portfolio supported its revenue performance in the first semester. Its revenues grew 24 percent to ₱122 billion from the same period last year.

“Our first semester results show recovery in the business environVista ment compared to last year. However, increasing infections from the Delta variant present new challenges,” Ayala President and CEO Fernando Zobel de Ayala said.

He added that, “As a business group operating in diversified industries, we will continue to do our part in helping revitalize the economy through continued investments and supporting the country’s pandemic response and vaccination program.”

Ayala Land registered a net income growth of 34 percent to ₱6 billion showing significant improvements in performance compared to the first half of 2020 during the onset of the pandemic.

Bank of the Philippine Islands’ net income went up one percent to ₱11.8 billion due to lower loan loss provisions while Globe Telecom recorded a net income growth of 13 percent to ₱13 billion on higher gross service revenues as well as the positive impact of the CREATE law.

AC Energy Corporation (ACEN) posted a net income growth of five percent to ₱2.7 billion as power demand returned to pre-pandemic levels and additional renewables capacity were added.

Manila Water’s net income improved 10 percent to ₱2.7 billion, mainly due to the absence of provisions and adjustments made in the same period last year.

AC Industrials narrowed its net losses from ₱1.8 billion in the first half of the previous year to ₱592 million due to better results across its subsidiaries, including IMI and AC Motors.