Ayala Corp., Asia’s oldest conglomerate, said its net income in the first half plunged 79 percent to P7.9 billion, from last year’s P37.83 billion, due to the devastating impact of the Covid-19 pandemic on its operations.
The company said its core businesses—from property development to power generation—were hit by the lockdowns. Its property development arm posted a sharp income decline, while the banking arm made a provision for loss.
The company said the income fall was also the base effect of divestment gains in power and education booked in the same period last year.
It did not give details on its revenues.
“Our group has taken advantage of the favorable debt market conditions to further solidify our balance sheet in these challenging times. Ayala Land, BPI, Globe and Manila Water are expected to raise $3 billion in combined proceeds from various domestic and international capital raising exercises,” Ayala Chairman and CEO Jaime Augusto Zobel de Ayala said.
“It is encouraging to see the strength of the Ayala brand translate to its continued ability to attract sizeable capital under the current environment,” he added.
“While the health crisis has stifled the momentum of some of our businesses, we have started to see positive trends in the operations of BPI, Globe, and Ayala Land since the easing of quarantine restrictions in June,” Ayala President and COO Fernando Zobel de Ayala said.
Ayala-owned listed firms Ayala Land Inc., Bank of the Philippine Islands (BPI), Globe Telecom Inc. and Manila Water Services Inc. all reported profit declines for the period, while Integrated Micro-Electronics Inc. (IMI) posted a net loss.
AC Energy registered a net income of P4.5 billion, an 80-percent decline from P23.2 billion, which included gains from the partial divestment of its thermal assets.
AC Industrials posted a net loss of P1.8 billion, as its main businesses in the global manufacturing industry and Philippine automotive space were significantly impacted by the global health crisis.
IMI recorded a net loss of $21.5 million, from an income of $5.78 million last year, as revenues dropped 25 percent to $476.17 million, from $635.69 million mainly due to plant shutdowns in various operating regions, including the Philippines, China and Mexico where government mandated quarantine protocols were implemented.
AC Motors incurred a net loss of P575 million on the back of overall low demand in the local automotive industry because of the health crisis, which limited the transportation sector throughout the period.
Image credits: Nonie Reyes