Conglomerate Ayala Corp. said its attributable income last year was cut in half to P17.14 billion, from the previous year’s P35.27 billion, as most of its units underperformed.
Revenues were down 25 percent to P219.92 billion, from the previous year’s P295.26 billion.
“Our sequential growth in the fourth quarter reflects a recovery in consumer confidence that has started to show in the latter part of 2020. We expect this trajectory to continue and lead to a full economic revival by 2022 as mobility further improves and as the country executes on the vaccination rollout as planned,” company president and COO Fernando Zobel de Ayala said.
Ayala said its income for the fourth quarter alone was at P5.8 billion, higher from the third quarter’s P3.4 billion. The fourth quarter figure, however, was still low as the company earns anywhere between P7 billion to P8 billion per quarter.
“This year, the Ayala group will continue to execute on its growth strategy and has allocated P196 billion in capital spending. A continued push for private sector investments would help revitalize the economy,” Zobel said.
Of this year’s capital expenditures, some P11.5 billion has been earmarked under the parent to support the emerging businesses in its portfolio.
In 2020, Ayala has earmarked some P275 billion in group capex but only spent some P152 billion.
Ayala’s core net income declined 16 percent to P26 billion in 2020 as the impact of mobility restrictions weighed on its various business units.
The core income excludes divestment gains from education and power booked in 2019, the impact of the reclassification of Manila Water as asset held under a new accounting standard (PFRS 5) for both 2019 and 2020, and the loan loss provisions for Bank of the Philippine Islands (BPI).In 2020, it recognized a partial reversal of the said loss provision in accordance with the accounting standard, the company said.
Income of property developer Ayala Land Inc. fell by almost three quarters to P8.7 billion as it endured the severe impact of the pandemic with its shopping malls heavily affected.
BPI’s net income declined 26 percent to P21.4 billion but mainly on the P28-billion in loan loss provisions it booked in anticipation of an increase in non-performing loan levels.
Globe Telecoms Inc. net income contracted 16 percent to P18.6 billion driven by the fall in gross service revenues, higher depreciation expenses from its continued network investments, and higher non-operating expenses.
AC Energy recorded a net income of P6.2 billion, or just a fraction of the previous year’s P24.5 billion, which included gains from the partial divestment of its thermal assets.
AC Industrials, meanwhile, still incurred a net loss of P1.8 billion in 2020, but the figure is narrower from the previous year’s P2.4-billion loss due to the improved results of its semiconductor unit.
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