Conglomerate Ayala Corp. said first-quarter net income declined by 17 percent in the first quarter to P6.7 billion from a year ago, as the COVID-19 health crisis affected the performance of most business units.
Ayala Corp. said in a disclosure to the stock exchange core businesses Ayala Land and Bank of the Philippine Islands recorded weak results on the impact of the enhanced community quarantine protocols which took effect on March 16.
Globe and AC Energy held steady during the period, as telco and power generation continued to operate during the quarantine albeit on skeleton staffing.
AC Industrials posted a net loss on the impact of government-mandated shutdown of its facilities in China and market disruptions in the global supply chain in manufacturing.
“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. We have likewise continuously done our part in assisting the government, healthcare sector, and economically vulnerable Filipinos who have been most affected by the crisis,” Ayala Corp. president and chief operating officer Fernando Zobel de Ayala said.
“While the outlook for the business environment has fundamentally changed as a result of this crisis, we take comfort in the fact that we have always maintained a strong balance sheet that provides us with flexibility as we navigate the uncertainties,” Zobel de Ayala said.
Ayala Corp. chairman and chief executive Jaime Augusto Zobel de Ayala said the group put in place a health protocol to ensure the re-entry of the company’s workforce in a safe and productive way once the government allows the reopening of business operations.
“Our AC Health and HR teams have developed a protocol for workplace COVID-19 testing to help assess and protect our employees based on their individual risk profiles. We believe this is a critical step as our businesses readjust to this new environment,” he said.
The parent level cash stood at P17.6 billion while net debt amounted to P93 billion as of end-March 2020.
Parent level capital expenditures amounted to P6.9 billion in the first quarter which went mostly to the newer businesses of the group.
