Ayala Corp. said it expects 2025 to be turning point for the company’s smaller businesses which could potentially boost the company’s share price.
Ayala president and chief executive Cezar Consing said in the company’s annual report several of the group’s smaller businesses undertook major rationalization initiatives last year that could lead to better results this year.
“I think 2025 could be an inflection year for our smaller businesses. Each of them undertook major rationalization initiatives last year, and we should begin to see the payoffs of such moves this year,” Consing said.
He said the group’s mobility business and retail ventures are displaying promising growth. He said that if the group’s smaller businesses continue to improve, they could help boost investor interest on Ayala shares.
“In the not too distant future, l think investors will want to acquire our stock to get exposure to our smaller and newer businesses,” Consing said.
Meanwhile, Consing attributed the decline in the company’s share price to challenging macro environment and losses posted by the group’s unlisted businesses.
“It is ironic that after a year in which we recorded all-time high earnings, our share price trades at historically low multiples. The macro environment has been challenging. President Trump’s win strengthened the US dollar, and that encouraged capital inflows into the US and capital outflows from the emerging markets. The Philippine stock market is 20-percdent lower than it was just last October, liquidity has dried up and capital inflows are negligible,” Consing said.
From a 52-week high of P740 in early October, the share price of Ayala Corp. went down to P560 on Wednesday.
The conglomerate reported a net income of P42 billion in 2024, up 10 percent from 2023. Excluding one-off items, core net income increased 10 percent to an all-time high of P45 billion.
Consing expects its four core businesses, real estate, banking, telecommunications and power generation, to continue to support the company’s growth.
He also expects other businesses to contribute to positive equity earnings, shareholder value and dividends.
Ayala allotted P230 billion for 2025 capital expenditures, up 3 percent from previous year’s actual spending.
