Ayala Corp. profit falls 75% in 9 months

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Credit: Read the original article from Manila Times.

Listed Ayala Corp.’s net income plunged by 75 percent year-on-year to P11.4 billion in the first nine months of 2020 after its core businesses posted lower net profits in the period.

Despite this, the diversified conglomerate reported in a disclosure late Thursday that for the third quarter alone, its bottomline more than doubled to P3.4 billion from the previous quarter’s figure on better earnings by its units after quarantine restrictions were eased.

“It is encouraging to see improvements in the performance of our businesses as the economy gradually reopens. Ayala Land [Inc.], BPI (Bank of the Philippine Islands) and AC Industrials (AC Industrial Technology Holdings Inc.) have all shown a marked recovery in their third-quarter results compared to the previous period,” Ayala President and Chief Operating Officer Fernando Zobel de Ayala said in the disclosure.

“Meanwhile, Globe and AC Energy are fairly stable components that have provided a boost in our portfolio in recent months. We are hoping to see this trajectory sustained in our businesses with a further loosening of restrictions,” he added.

Ayala Land posted a P6.4-billion net income in the first three quarters, down 73 percent year-on-year, on the back of lower project bookings from suspended construction activities, limited mall and hotel operations, and temporary closure of resorts. Its revenues also declined by 48 percent to P63.3 billion.

BPI saw its net profit fall by 22 percent to P17.2 billion in January to September on the P21.1-billion loan loss provisions made in anticipation of an increase in nonperforming loan levels. But revenues rose by 10 percent to P77.9 billion, which was credited to improvements in net interest and non-interest incomes.

Globe Telecom Inc.’s net income declined by 10 percent to P15.9 billion in the nine months, while its services revenues dipped by 1 percent to P109.1 billion on account of softness in its mobile segment amid quarantine restrictions.

AC Energy Inc.’s three-quarter profit contracted to P5.6 billion from P24.3 billion last year.

Manila Water Co. Inc. saw its net income slip by 29 percent year-on-year to P3.1 billion as a result of lower earnings from its non-East Zone businesses, and higher depreciation and interest expense. Revenues were flat at P16.1 billion.

AC Industrials incurred a net loss of P2.1 in the nine months despite its manufacturing arm, Integrated Micro-Electronics Inc. (IMI), slowly recovering on renewed demand and normalized operations.

IMI posted a $11.9-million loss in the period as it saw lower demand across its product lines — except for medical and telecom — and restricted plant operations.

AC Motors recorded a P770-million loss on softened demand in the local automotive space.

Ayala Corp. shares decreased by P26 or 2.99 percent to close at P844 each on Friday.

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