Zobel-led Ayala Corporation’s smaller and newer businesses have turned around or are reducing losses amid measures being taken to ensure their profitability in about two years.

“Our smaller, newer companies are turning the corner. We are constructive on the year,” Ayala President and CEO Cezar P. Consing said in a disclosure to the Philippine Stock Exchange.

For the first quarter of 2025, AC Health narrowed net losses to ₱59 million from ₱191 million in the same period last year, driven by better utilization of facilities and improved margins through prudent cost management, supported by the absence of KonsultaMD losses.

The improved performance was anchored by stronger results from the provider group, which more than offset softness in the pharma segment.

AC Logistics’ core net loss narrowed to ₱303 million from ₱400 million on the back of cost savings and margin uplift from the closures of Entrego and the last mile arm of AIR21.

Similarly, attributable EBIT losses narrowed to ₱153 million from ₱229 million as rationalization initiatives reduced OPEX by ₱500 million.

AC Industrials saw its core net loss narrow to ₱115 million from ₱331 million. Including one-offs, reported net loss narrowed to ₱294 million from ₱932 million.

IMI’s continued turnaround and reduced stake in Merlin Solar more than offset wider losses in ACMobility.

IMI reported a net income of US$3.3 million, a turnaround from the US$3.7 million net loss last year on the back of improved margins and cost savings from the restructuring activities.

ACMobility posted a net loss of ₱168 million from ₱35 million due to marketing and manpower expenses, mainly related to the ramp-up of BYD and its charging infrastructure network.

Ayala Corporation Chairman Jaime Augusto Zobel de Ayala said last month that, “We want to ensure that our emerging business units have a credible path to scale and the ability to achieve good valuation levels. Currently, we're focused on helping our emerging businesses achieve profitability and scale.”

For the rest of the group, Consing said “We are seeing strong starts from our banking, real estate and fintech businesses. Our telco and energy businesses have some catching up to do.”

Ayala reported that its core net income, which excludes one-off items, declined four percent to ₱11.3 billion as healthy contributions from BPI and Ayala Land cushioned lower earnings from Globe and AC Energy & Infrastructure Corporation.

Including one-off items, Ayala’s net income decreased four percent to ₱12.6 billion.

BPI’s net income grew nine percent to ₱16.6 billion as loan growth and net interest margin (NIM) continued to expand while Ayala Land’s net income increased 10 percent to ₱6.9 billion driven by increased revenues from its property development, leasing and hospitality segments.

Globe’s core net income, which excludes non-recurring charges, foreign exchange and mark-to-market charges, decreased 22 percent to ₱4.5 billion due to softer gross service revenues, higher financing costs, and higher depreciation expenses.

Net income rose three percent to ₱7 billion due to higher equity earnings from affiliates and a ₱2.2 billion dilution gain from Globe’s ownership in Mynt.

ACEN's reported net income declined 28 percent to ₱2 billion due to lower Philippine generation, weaker local spot market prices, and depreciation expenses from newly operationalized plants.

ACEIC, the parent company of ACEN, recorded a core net income of ₱1.7 billion, 46 percent lower owing to lower contributions from ACEN, higher depreciation and interest expenses, and forex losses.