Ayala Corp., a diversified investment holding group, said Friday net income last year proved flat at P27.4 billion as strong contributions from its banking and real estate units were tempered by one-off items, particularly a write-off by AC Energy and impairment provisions of AC Venture.
Revenue in 2022 reached P306.6 billion, up 20 percent year-on-year.
With the reopening of the economy last year, Ayala Corp. increased capital expenditures from 2021 by 24 percent to P280.3 billion, with the bulk going to investments made by real estate unit Ayala Land Inc., Globe Telecom Inc., and clean energy arm ACEN Corp.
The capital expenditure budget for this year is P264 billion, with P19.4 billion to be used by Ayala Corp. to fund investment opportunities.
The major contributors to earnings were Bank of the Philippine Islands, whose net income last year surged 66 percent to P39.6 billion, and Ayala Land, whose net profit jumped 52 percent on year to P18.6 billion.
Ayala Corp. said the significant one-off items last year include gains from BPI’s sale of a property, Globe’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.
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.
It’s parent company, AC Energy, however, saw net income drop by half to P4.6 billion due to divestment of two coal assets, a write-down from the divestment of SLTEC, and a gain from the divestment of GN Power Kauswagan in 2021. Even stripped of these one-off items, AC Energy’s net profit was still down 4 percent.
AC Health, the emerging investment of Ayala Corp., achieved profitability last year, 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, meantime, continued to focus on growing its businesses beyond last mile and integrating the assets of Entrego and AHI to improve efficiencies and customer experience.
“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,” said Ayala Corp. president and chief executive officer Cezar Consing in a statement. “With strengthening macro, our businesses should get back to or exceed pre-pandemic levels in 2023,” he added.
