Ayala Corp. has sustained robust growth in the last six years despite economic volatility and political changes. Profitability is double-digit growth since 2012, translating into a compounded annual growth rate of 22%, and total shareholder return of 22%, according to Chairman and CEO Jaime Augusto Zobel de Ayala (JAZA).
JAZA says the group is on track to double profits to P50 billion by 2020, hit a return on common equity of 15%, and generate 20% of profits from emerging businesses, and 10% from international portfolio.
It looks like Ayala will hit its profit target a year ahead of schedule. But raising its return in equity to 15% could be a hurdle.
In 2016, Ayala generated a return on equity of 11.71%, with profits of P43.43 billion (up 13.42% from 2015), on revenues of P237.28 billion (up 14.26%).
In 2017, Ayala had a return on equity of 12.13% with profits of P49.86 billion on revenues of P266.786 billion.
“Our emerging businesses, primarily AC Energy and AC Industrials, contributed 16% to our equity earnings in 2017, versus our target of 20% at the end of the decade. Meanwhile, international platforms contributed 7% to our equity earnings during the year, against our goal of 10% in 2020,” reports Ayala Corp. President and Chief Operating Officer Fernando Zobel de Ayala.
Aside from putting cash in the hands of its owners, Ayala Corp. has other relevancy goals.
One is inclusive growth in a country were 2%, probably less, of the 23 million families, own more than 65% (probably more) of the wealth the economy generates. Another is helping the environment sustain itself amidst the worst pollution the world has ever known (not in the Philippines, yet, though).
The investments we have made across our group are all in support of the country’s development agenda. We have deployed P898 billion in combined capital expenditure over the last six years, which is equivalent to approximately 50% of the Philippines’ foreign direct investments over the same period.
We will continue to put the resources, knowledge, expertise, and talent that we have across our group to harness our sustainable business practices and find new and improved ways to broaden economic inclusivity and remain relevant to our specific markets.
This is an unprecedented time for the Ayala group. Never in our history have we been so engaged and aligned with the world’s development goals, while also having a broad-based impact on the Philippines. From contributing to “Decent Work and Economic Growth,” to “Affordable and Clean Energy,” to “Clean Water and Sanitation,” we are helping to change the developmental landscape of the Philippines.