Ayala Land Inc., the property arm of Ayala Corp., managed to post a 10 percent growth in net profit for the full year of 2008 despite the economic downturn.
The company had a net income of P4.8 billion last year against P4.4 billion in 2007, owing to strong operating revenues and equity earnings from affiliates, plus some cost control measures, said Jaime Ysmael, Ayala Land senior vice president and chief finance officer.
Ayala Land's equity in net earnings of investees rose by 12 percent to P885 million.
Consolidated revenues, meanwhile, grew 31 percent to P33.7 billion from P25.7 billion, with bulk of the gains delivered by the residential, strategic landbank and construction businesses. Shopping centers and the corporate business also contributed better results to Ayala Land's topline.
Looking ahead, Ysmael said sales could slow down but costs would remain low, given minimal increases in prices of steel.
"It would be a challenging time to launch new projects in certain segments like the high-rise residential and the office areas. But then we still have a lot of ongoing projects which we are continuing to construct and as these progress, we would still have the produce. We recognize revenues based on percentage of completion," he noted.
Ayala Land is spending P17.4 billion for capital expenditures this year, down from P18.9 billion in 2008. The bulk of the 2009 budget would go to ongoing residential projects.