CONGLOMERATE Ayala Corporation on Monday reported a 16 percent surge in profits last year, bolstered by double-digit growth of its real estate and power businesses.
Ayala told the Philippine Stock Exchange its net income reached P30.3 billion in 2017 from P26.01 billion the previous year.
“We are happy to see this earnings momentum sustained for the sixth consecutive year as the expansion strategy across our portfolio of businesses continues to bear fruit… We remain positive about our trajectory as we move closer to our 2020 goals,” said Ayala Corporation President and Chief Operating Officer Fernando Zobel de Ayala.
The resurgence of property sales combined with a solid leasing business drove Ayala Land Inc.’s net earnings during the year, jumping 21 percent to P25.3 billion from P20.9 billion.
Revenues from property development, which includes residential and office-for-sale developments, as well as commercial lot sales, rose 23 percent to P101.5 billion on new bookings and project completion.
Commercial leasing revenues increased 10 percent to P31 billion, driven by new mall openings, stabilized occupancy of office spaces and the improved performance of its hotels and resorts portfolio.
AC Energy’s net earnings rose 31 percent to P3.5 billion in 2017 from P2.7 billion the previous year, primarily driven by fresh equity earnings contribution from its geothermal platform and solid contributions from its wind energy assets.
Bank of the Philippine Islands booked a net income of P22.4 billion, up 1.7 percent from P22.1 billion last year, as the absence of one-off gains tempered strong growth in its core banking business during the year.
Higher operating expenses and depreciation charges as a result of increased investments in data network pulled down the net earnings of Globe Telecom by five percent to P15.1 billion in 2017.
Manila Water posted a muted net income growth of one percent to P6.2 billion, as higher operating expenses and business development costs tempered topline growth during the year.
Net income of AC Industrials reached P1.2 billion last year, up four percent from its year-ago level, on better performance of both its electronics manufacturing and vehicle retail units.
AC Health continues to scale up its platforms in retail pharmacy and primary care. Generika, its retail network of affordable quality generic medicines, recorded P3.3 billion in revenues, up 15 percent from a year ago on higher retail sales and store expansion.