Conglomerates Ayala Corp., Alliance Global Group Inc. and JG Summit Holdings Inc. posted a sharp rebound in corporate earnings in the first half from a year ago, but expressed concern over the new challenges linked to the spread of the more contagious Delta variant of the coronavirus.
Ayala Corp. said in a disclosure to the stock exchange Thursday net income grew 31 percent in the first six months to P10.4 billion from a low base in the same period last year when Metro Manila was placed under the most stringent quarantine status.
First-half revenues also rose 24 percent to P122 billion, supported by the strong performance of property, telecommunication, power generation and manufacturing businesses.
“Our first-semester results show recovery in the business environment compared to last year. However, increasing infections from the Delta variant present new challenges,” Ayala president and chief executive Fernando Zobel de Ayala said.
AGI, the holding company of businessman Andrew, said first-half net jumped 124 percent to P8.5 billion from P3.8 billion in the same period last year, boosted by diversified revenue streams.
It said consolidated revenues increased 16 percent in the first six months to P71 billion compared to last year’s P61.4 billion.
“All of our business segments here and abroad managed to sustain the quarterly growth trajectory we have been experiencing since the third quarter of 2020, indicating the extent of pent-up consumer spending across the globe, capped only by the prevailing restrictions in those areas to curb the rise of the COVID-19 Delta variant,” AGI chief executive Kevin Tan said.
JG Summit, the listed holding company of the Gokongwei Group, reported a net income of P936.7 million in the first half, a turnaround from a P720-million net loss it registered in the same period last year.
The conglomerate attributed the positive first-half performance to strong volumes and higher margins in JG Summit Petrochemicals Group and sustained net income contribution from its property business which offset the continued weak performance of its air transportation business.
“Despite the lingering impact of the pandemic, we have successfully kept our food and banking revenues stable while we continue to exhibit strong recovery on businesses that had been more severely affected by the first enhanced community quarantine in the second quarter last year, namely real estate and petrochemicals,” JG Summit president Lance Gokongwei said.
“We firmly believe that with our diversified portfolio and the agile initiatives we have put in place, the group will be able to navigate the challenges for the balance of the year and onwards,” Gokongwei said.