MANILA, Philippines – Ayala Corporation, one of the country’s largest and oldest conglomerates, posted lower profits in the 1st quarter of 2020 due to the coronavirus pandemic.

In a disclosure to the Philippine Stock Exchange on Wednesday, May 13, Ayala reported a net income of P6.7 billion during the 1st quarter, 17% lower than in the same period last year, dragged down by its property, banking, and industrial businesses.

Revenues fell by 11% to P61.7 billion during the quarter. 

Without the pandemic, Ayala said its net income would have been flat due to the P1-billion divestment gains from the merger of AC Education and iPeople in 2019. 

Overall profits were lifted by Globe and AC Energy, which reported steady figures on the back of skeleton staffing.

“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,” Ayala president and chief operating officer Fernando Zobel de Ayala said. (READ: Ayala group allots P2.4 billion for coronavirus response)

Here are the earnings reports of the Ayala units:

Ayala Land

Net income: P4.3 billion, down 41%

Revenues:  P28.4 billion, down 28%

Ayala Land drastically trimmed its capital expenditures (capex) for 2020 to P69.8 billion from the original P110 billion. It will not launch new projects this year due to the pandemic.

Bank of the Philippine Islands (BPI)

Net income: P6.4 billion, down 5%

Revenues: P25.3 billion, up 11%

BPI’s earnings declined due to its aggressive stance in loan loss provisioning. It booked P4.2 billion in provisioning for the 1st quarter, as it considered the potential rise in non-performing loans due to the coronavirus. This is 2.4 times higher than the P1.8 billion allocated in the same period last year.

Globe

Net income: P6.6 billion, down 2%

Revenues: P36.9 billion, up 2%

Globe‘s bottom line decreased as a result of higher non-operating charges and depreciation from network investments.

Its mobile data revenues and home broadband subscriber base soared by 12% and 32%, respectively.

AC Energy

Earnings turned around during the period to P1.96 billion from P2 million a year ago due to its P1.3-billion pre-operating revenue from GN Power Kauswagan and recovery of costs incurred from adjustments in the construction and operations of power plants.

Manila Water

Net income: P1.3 billion, up 4%

Core net income: down 12%

Revenues: up 9%

Manila Water said its net profits grew 4%, even as the government imposed regulatory fines and the company implemented bill waiver for consumers during the water crisis last year. (READ: Ayala to consolidate power, water, infrastructure businesses)

AC Industrials

Net loss: P564 million

Integrated Micro-Electronics

Net loss: P235 million

AC Motors

Net loss: P204 million

The loss was due to the closure of Honda Cars Philippines’ Laguna facility, as well as a plunge in total sales. 

“As we anticipate the reopening of business operations, it is imperative that we strike a balance between productivity and the health of our employees. With this in mind, we have put in place a health protocol to ensure the reentry of our workforce in a safe and productive way,” Ayala chairman and chief executive officer Jaime Augusto Zobel de Ayala said. – Rappler.com