Ayala doubles profit to ₱46.2 B

Published November 12, 2019, 12:00 AM

by manilabulletin_admin

By James A. Loyola

Ayala Corporation reported that its net income almost doubled to ₱46.2 billion during the first nine months of the year, lifted by the solid contribution of its banking, telecommunications, real estate, and power units.

Ayala Corporation logo (Photo courtesy of www.ayala.com.ph/)

In a disclosure, Ayala said equity earnings from Ayala’s business units grew 77 percent to ₱51.9 billion, boosted by contributions coming from the Bank of the Philippine Islands, Ayala Land, and AC Energy.

Ayala also recognized gains from the merger of AC Education with iPeople and from the partial divestment of AC Energy’s thermal assets.

All these cushioned the impact of weaker results of AC Industrials, which is experiencing headwinds from one of the sharpest and most widespread downturns in global manufacturing that significantly weighed on most of its business lines.

“We are pleased to see sustained growth in most of our core businesses continuing to provide stability in our earnings. AC Energy has quickly become a significant contributor to our portfolio,” Ayala President Fernando Zobel de Ayala said.

He added that, “We continue to be mindful of the challenges in some sectors, particularly AC Industrials and the global manufacturing space. We believe the strategies put forth in AC industrials continue to be promising but are saddled near-term by geopolitical and trade issues.

“The pipeline of opportunities remains strong and efforts to manage the effects of this near-term uncertainty are being aggressively addressed,” Zobel explained.

Meanwhile, Ayala Healthcare Holdings, Inc. (AC Health) is expanding its pharma portfolio with new investments into IE Medica, one of the major importers of pharmaceutical products in the country, and MedEthix, its affiliated distribution company.

In a statement, Ayala Corporation said AC Health has signed an agreement to acquire minority stakes in both companies.

IE Medica and MedEthix were founded by Vasant and Monaliza Salian in 2006 and 2009, respectively, with the goal of importing and distributing a wide range of medicines, including generics and innovative drug delivery systems.

Since then, the company has grown to become a key player in the pharmaceutical industry, and has established its presence across various therapeutic areas.

The investments in IE Medica and MedEthix will allow AC Health to vertically integrate its pharmaceutical portfolio, and further strengthen the supply chain for its network of over 800 Generika pharmacies, and 70 FamilyDOC primary care clinics.

In the future, this partnership will also allow AC Health to offer more affordable medicines at its cancer hospital, which will open in 2022.