Ayala Corp. Fourth-Quarter Profit Fell on One-Off Costs

By Ben Otto

Ayala Corp.'s fourth-quarter net profit dropped 58%, as one-off losses offset the benefit of higher economic activity during the holiday season.

The Philippine conglomerate said Friday that net profit fell to 3.5 billion Philippine pesos ($63.4 million) from PHP8.4 billion a year ago as the company booked a PHP2.5 billion impairment provision related to investment in Myanmar-focused Yoma Group. Core net income, which strips out one-off items, rose 41% to PHP6 billion, it said.

For the full year, net profit fell 1.3% to PHP27.40 billion, while total revenue from continuing operations rose 20% to PHP306.64 billion.

Group capital expenditure rose 24% in 2022 to PHP280.3 billion. The company said it plans group capex of PHP264 billion this year.

Chief Executive Cezar P. Consing said he expects group businesses to reach or exceed prepandemic levels in 2023. "If 2022 was marked by revenge spending on the part of consumers, 2023 may well see the resurgence of the economy as a whole," he said.

Write to Ben Otto at [e-mail]

(END) Dow Jones Newswires

03-10-23 0510ET