Ayala Corp. posts P6.7-B net income in Q1, down 17%

Conglomerate Ayala Corp. posted a net income of P6.7 billion in the first quarter of 2020, down 17% from P8 billion a year earlier as the COVID-19 crisis affected the performance of most of the firm’s business units.

Excluding the impact of the COVID-19 crisis, Ayala said its net income for the January to March period was flat year-on-year, which included the P1-billion divestment gains from the merger of AC Education with iPeople.

“This unprecedented health crisis has resulted in a radical transformation of societies, economies, and businesses, including the Ayala group. At the onset of the crisis, the Ayala group has prioritized the welfare of our workforce and our many stakeholders across our ecosystem. We have likewise continuously done our part in assisting the government, healthcare sector, and economically vulnerable Filipinos who have been most affected by the crisis,” Ayala president and COO Fernando Zobel de Ayala said.

“While the outlook for the business environment has fundamentally changed as a result of this crisis, we take comfort in the fact that we have always maintained a strong balance sheet that provides us with flexibility as we navigate the uncertainties,” Zobel de Ayala added.

Ayala Land’s total revenues and net income contracted 28% to P28.4 billion and 41% to P4.3 billion, respectively in the first quarter of 2020 as the COVID-19 ECQ impacted its business operations.

Bank of the Philippine Islands booked P4.2 billion loan loss provisions, higher from P1.8 billion a year earlier, during the period, considering the rise in non-performing loans from the impact of the health crisis.

Globe posted a net income of P6.6 billion, down 2% due to an increase in depreciation from network investments made and non-operating charges likewise increasing.

AC Energy’s net profits turned around during the period to P1.96 billion from P2 million a year ago, largely driven by its P1.3 billion pre-operating revenue from GN Power Kauswagan and recovery of costs incurred from adjustments in the construction and operations of its power plants.

Manila Water’s first quarter 2020 net profits grew 4% year on year to P1.3 billion mainly due to the impact of the P534 million MWSS penalty and P353 million bill waiver from the water crisis last year.

AC Industrials registered a net loss of P564 million owing to the softer performance of the global economy and the Philippine automotive sector in the first quarter of the year.

IMI posted a net loss of P235 million as revenues dropped 21% to P12.8 billion, hampered by government-mandated shutdowns of its China facilities in February and the Enhanced Community Quarantine protocols in the Philippines that began in mid-March.

AC Motors recorded a net loss of P204 million, primarily driven by the closure of Honda Car Philippines’ Laguna facility combined with a plunge in the group’s total sales.

The lower unit sales was caused by the impact of the Taal eruption in the year and the COVID-19 pandemic lockdown towards the end of the first quarter. — RSJ, GMA News