Ayala first-half core profit falls 7% as property drags

Insider Spotlight

• Ayala Corp.’s first-half core net income fell 7 percent to P22.1 billion as weaker Ayala Land earnings and lower non-operating income offset gains elsewhere
• Reported net income declined 2 percent to P22.87 billion, while consolidated revenue increased 5 percent to P192.08 billion
• Liquidity strengthened, with consolidated cash at P75.60 billion and parent-level cash rising 44 percent to P19.90 billion
  
  
  
  

Ayala Corp.’s core earnings weakened in the first half as softer property results and lower non-operating income outweighed stronger contributions from its telecommunications, energy and emerging businesses.

By the numbers

Core net income declined 7 percent to P22.1 billion from a year earlier, while reported net income attributable to the parent slipped 2 percent to P22.87 billion.

Consolidated revenue, including Ayala’s share in net profits of associates and joint ventures, climbed 5 percent to P192.08 billion from P183.50 billion. Costs and expenses increased 7 percent to P145.17 billion.

What drove it

Ayala Land’s net income dropped 19 percent to P11.50 billion as property development revenues fell 22 percent to P41.00 billion amid persistent macroeconomic headwinds. Leasing and hospitality revenues, however, grew 9 percent.

Bank of the Philippine Islands’ earnings were flat at P32.80 billion as higher expenses and provisions offset a 12-percent revenue growth.

Globe Telecom’s normalized net income rose 10 percent to P11.00 billion, while AC Energy and Infrastructure Corp. nearly doubled earnings to P4.90 billion.

Ayala also booked lower dividend income from Manila Water following payment of divested preferred shares and felt the impact of its reduced Mynt stake after Mitsubishi Corp.’s 2025 investment.

Zoom in

Emerging businesses showed mixed but improving trends. AC Logistics narrowed its net loss by 58 percent to P264 million, while Integrated Micro-Electronics’ net income excluding Via Optronics losses jumped 50 percent to $14 million. AC Health’s loss widened to P167 million despite 25 percent revenue growth.

Balance sheet check

Consolidated net debt rose 8 percent to P685.60 billion, pushing net debt-to-equity to 0.82 times from 0.79 times, still well below Ayala’s 3.0-times covenant.

“A well-diversified portfolio coupled with good traction from initiatives undertaken over the past few years have produced solid results even in a period of geopolitical and macroeconomic challenges. Seeing how our portfolio has performed in a challenging environment gives us confidence of the considerable value that can be created in a more benign environment.,” Ayala CEO Cezar Consing said. —Daxim L. Lucas| Ed: Corrie S. Narisma