Conglomerates make comeback in Q3 as quarantines eased
MANILA, Philippines — Easing quarantine restrictions have allowed some of the country’s conglomerates to slowly make a comeback in the third quarter compared to the previous quarter.
Based on recently released financial reports, some of the country’s sprawling empires benefitted from the lifting of lockdowns.
Moving forward, they continue to push for the further reopening of the economy.
Ayala Corp. president and COO Fernando Zobel de Ayala for one said they hope to sustain the company’s third quarter recovery as government loosens restrictions.
“We are hoping to see this trajectory sustained in our businesses with a further loosening of restrictions,” Zobel said.
Ayala Corp. posted a net income of P3.4 billion in the third quarter, more than double the second quarter performance, but still lower than the P8.3 billion posted in the same period last year.
Metro Pacific Investments Corp. (MPIC), the tollroads and infrastructure conglomerate chaired by tycoon Manuel V. Pangilinan, likewise posted an improvement in third quarter income to P2.4 billion, up 26 percent compared to the previous quarter.
MPIC president and CEO Jose Ma. K. Lim said the quarantines reduced toll road traffic, closed and then reduced rail services, and decreased commercial and industrial demand for water and power.
Gokongwei-owned JG Summit Holdings Inc. likewise posted a third quarter recovery.
Its consolidated net income in the third quarter rose to P844 million, a turnaround from the reported net loss of P2.6 billion in the second quarter.
JG Summit president & CEO Lance Gokongwei said the conglomerate’s business continue to face challenges, but noted that third quarter results are encouraging.
“With the easing of restrictions, economic activity has slowly returned and our different business units showed some quarter- on- quarter recovery, but I also note that these results are far from ideal and still showed steep declines versus a year ago,” Gokongwei said.
Alliance Global Group Inc. (AGI), the listed conglomerate of tycoon Andrew Tan, posted an improvement in third quarter net income to P2.2 billion from P156 million in the second quarter, a 14 fold increase.
AGI’s chief executive officer Kevin Tan said the gradual easing of community quarantines throughout the country and the further reopening of the economy helped the company recover.
He said the sharp improvement in earnings across all business segments during the third quarter were due to the further easing of the quarantine restrictions.