AYALA Corp. net income fell 24 percent last year to P41.98 billion from the previous year’s P55.06 billion, as its core businesses of water and manufacturing plants of electronics and automotive parts overseas took a hit.
“The events of the past year have challenged the stability of our corporate momentum over the last decade. This ability to deal with adversity has been built on our fundamental strengths of adhering to the highest standards of corporate governance, always looking to develop value over the long term, remaining flexible to adjust to changing circumstances and constantly aligning our business objectives with the broader development needs of the country,” Ayala Chairman and CEO Jaime Augusto Zobel de Ayala said.
“Notwithstanding the challenges faced by our water and global manufacturing businesses in the past year, our real estate, banking, telco, and power units continue to serve as engines of growth. This validates the strength of a diversified portfolio and the expansion strategy we put in place a decade ago,” said Ayala President and COO Fernando Zobel de Ayala.
The company’s attributable income was higher at P35.27 billion, up 11 percent from the previous year’s P31.81 billion, but mainly as a result of its divestment gains of P23.6 billion from AC Education and AC Energy.
The company said it made a remeasurement loss of P18.1 billion for Manila Water, while the slowdown in AC Industrials, which owns Integrated Micro-electronics Inc., resulted in a net loss of P2.4 billion.
Revenues were up 4 percent to P295.26 billion, from P283.8 billion the previous year.
Its property development, telco and banking arms all reported positive results.
Last year, the company said it sent some P215 billion in capital expenditures, more than half or about P109 billion were spent by property developer Ayala Land Inc., and P51 billion by its telco Globe Telecom Inc.
“Ayala has programmed close to P275 billion in group capex, of which P20.8 billion has been earmarked under the parent to support the emerging businesses in its portfolio,” the company said.