Conglomerate Ayala Corp. on Thursday said its income grew 31 percent to P10.39 billion in the first semester, from P7.94 billion last year, when a huge part of the country was under the tightest quarantine curbs.
Revenues reached P121.97 billion, some 23 percent higher than last year’s P98.72 billion.
Ayala’s core net income, which isolates the effect of various provisions, remeasurement losses, the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law as well as divestment gains booked in 2019, fell 8 percent to P13.3 billion year-on-year. The figure is equivalent to 90 percent of Ayala’s pre-pandemic level.
“Our first semester results show recovery in the business environment compared to last year. However, increasing infections from the Delta variant present new challenges”, Ayala President and CEO Fernando Zobel de Ayala said.
“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 Inc. registered a net income growth of 34 percent to P6 billion on significant improvements in performance during the period.
Lender Bank of the Philippine Islands’ net income was flat at P11.8 billion due to lower loan loss provisions.
Globe Telecom Inc. recorded a net income growth of 13 percent to P13 billion on higher gross service revenues as well as the positive impact of the CREATE law.
AC Energy Corp. posted a net income growth of 5 percent to P2.7 billion as power demand returned to pre-pandemic levels and additional renewables capacity were added. This was partially tempered by high spot electricity purchases during a thermal outage and the absence of non-recurring gains during the period.
The net income of Manila Water Co. Inc., the east zone concessionaire, grew 10 percent to P2.7 billion year-on-year, mainly due to the absence of provisions and adjustments made in the same period last year.
Ayala’s investment in Manila Water was reclassified from a subsidiary to an investment in associates beginning June 3, following loss of control. This reflects Ayala’s reduced economic interest in the company to 38.6 percent from 51.4 percent after Enrique K. Razon Jr.’s Trident Water completed the acquisition of a majority stake in Manila Water.
AC Industrials narrowed its net losses to P592 million from P1.8 billion in the previous year due to better results across its subsidiaries, including Integrated Micro-Electronics Inc. and AC Motors.