MANILA, Philippines - Ayala Corp., one of the country's leading conglomerates, reported its net income surged 46 percent to P18.6 billion in 2014.
The company attributed the strong profit growth to its real estate, telecom and electronics manufacturing units, as well as a net gain from the sale of its business process outsourcing asset.
Excluding the impact of accelerated depreciation from Globe's network transformation initiative, Ayala's core net income actually went up 25 percent in 2014.
Ayala said its profits have been growing above 20 percent in the last three years.
Equity contributions from its business units jumped 42 percent to P24.9 billion in 2014. Ayala Land's equity earnings rose 28 percent, while Globe's contribution more than doubled and Integrated Micro-Electronics' contribution expanded threefold.
This managed to offset the flat contribution from the Bank of the Philippine Islands, which registered lower trading income during the year.
"We are very pleased with the performance of our business units as they continue to benefit from the aggressive growth strategy they executed a few years ago.... As our business units sustain their growth momentum and the overall business environment continues to be encouraging, we are optimistic we can achieve our net income target of P20 billion this year, a year ahead of the plan," Ayala President and Chief Operating Officer Fernando Zobel de Ayala said.
Ayala Land's net income jumped 26 percent to P14.8 billion year-on-year, driven by its property development and commercial leasing operations.
Globe Telecom posted a record net income of P13.4 billion in 2014, on the back of continued growth of its mobile, broadband, and fixed line data businesses.
Meanwhile, Manila Water's consolidated net income inched up one percent at P5.8 billion, on improved billed volume and higher contribution from new businesses.
IMI's net income soared nearly threefold to $29.1 million from its year-ago level.
However, BPI's profit fell 4 percent to P18 billion in 2014, due to a 5 percent decline in non-interest income as a result of a sharp contraction in trading gains compared to the previous year.
Ayala parent company ended the year with a gross debt of P101 billion and cash of P48.3 billion.
This year, Ayala has set aside P21 billion in capital expenditures at the parent level. The funds will go to its power generation and transport infrastructure projects.
The Ayala group has earmarked P185 billion in combined capital expenditures this year mainly for Ayala Land and Globe's expansion.