Ayala Corporation (AC) Q2 2024 earnings summary

Executive summary

• Core net income after tax (NIAT) rose 18% to ₱24.3 billion, driven by strong growth across BPI, Ayala Land, Globe, and ACEN, with reported consolidated NIAT up 21% to ₱22.3 billion including one-off items.

• Equity earnings grew 21% to ₱30.7 billion, reflecting robust contributions from key subsidiaries.

• BPI achieved record net income of ₱30.6B (+22%), Ayala Land net income rose 15% to ₱13.1B, Globe core net income improved 18% to ₱11.7B, and ACEN net income (excluding gains) increased 21% to ₱4.9B.

• Consolidated sales of goods and services increased 13% to ₱156.6B, led by real estate, automotive, and logistics, partially offset by lower IMI and ACEIC electricity sales.

Financial highlights

• BPI NIAT up 22% on higher net interest and non-interest income; gross loans grew 17%.

• Ayala Land NIAT up 15% with residential revenues up 40% and leasing revenues up 10%.

• Globe core NIAT up 18%, driven by Mynt’s strong performance; Mynt equity earnings up 120%.

• ACEN NIAT up 49% on higher renewable energy output and improved merchant position.

• Total assets rose 4% to ₱1.7T from end-2023, mainly from increases in property, plant, and equipment, receivables, and inventories.

Outlook and guidance

• Over 1GW of new renewable energy capacity expected to come online in the next 6–12 months.

• Ayala Land targets ₱85B in launches for 2024.

• Medium-term target of ₱65B core net income by 2026 reaffirmed; ₱50B divestment plan to be completed by year-end.

• Capex budget for 2024 set at ₱284B, up 14%, with focus on Ayala Land and ACEN; refinancing of ₱29B in maturing obligations planned for 2024 and early 2025.

• AC Logistics expects rationalization to continue over 12 months, with improvements anticipated late 2025.