Ayala net income flat, sets P264 B capex

Ayala Corporation, the country’s oldest conglomerate, reported an 18 percent growth in core net income to P27.7 billion last year while setting a slightly lower group capital expenditure budget of P264 billion.
In a disclosure to the Philippine Stock Exchange, Ayala said core profits improved mainly due to higher contributions from Bank of the Philippine Islands and Ayala Land Inc. which benefitted from the re-opening of the economy.
Ayala added that its reported net income was flat at P27.4 billion as this includes significant one-off items such as gains from BPI’s sale of a property, Globe Telecom’s partial sale of its data center business and a portion of its towers, ACEN’s accelerated acquisition of UPC Australia, AC Energy’s write-off from the sale of SLTEC, and AC Venture’s impairment provisions on the investment in Yoma.
The Ayala group is lowering its capex this year by 6 percent from the P280.3 billion spent in 2022. Of the allocated P264 billion in group CAPEX for 2023, P19.4 billion is budgeted to come from Ayala Corporation to fund investment opportunities.
“Our full year results demonstrate the strength and diversification of our portfolio. If 2022 was marked by revenge spending on the part of consumers, 2023 may well see the resurgence of the economy as a whole. With strengthening macro, our businesses should get back to or exceed pre-pandemic levels in 2023,” Ayala President and CEO Cezar P. Consing said.
BPI’s net income rose 66 percent year-on-year to P39.6 billion on the back of higher interest and non- interest income, lower provisions, and the gain from a property sale.
ALI’s net income jumped 52 percent year-on-year to P18.6 billion due to stronger commercial lot sales and the doubling of its revenues from commercial leasing and hotels and resorts.
Globe’s net income grew 46 percent year-on-year to P34.6 billion mainly from higher data service revenues and gains from the partial sale of its data center business and a portion of its tower assets.
ACEN’s net income more than doubled year-on-year to P13.1 billion mainly due to a revaluation gain from its accelerated acquisition of UPC Australia, supported by contributions from new domestic and international plants.
ACEN’s parent company, AC Energy, saw its net income decline 50 percent to P4.6 billion mainly due to one-offs from the divestment of two coal assets: a write-down from the divestment of SLTEC in 2022 and a gain from the divestment of GN Power Kauswagan in 2021.
Isolating the effect of these significant one-offs, AC Energy’s core net income was down 4 percent year-on-year.
As for Ayala’s emerging businesses, AC Health achieved profitability, booking P229 million in net income mainly due to the improving results of its pharma and clinic arms, boosted by a remeasurement gain related to its stake in IE Medica.
AC Logistics, on the other hand, continued to focus on growing its businesses beyond last mile and integrating the assets of Entrego and AHI to improve efficiencies and customer experience.