AyalaLand Logistics Q2 net income: P203M (up 26% y/y)

AyalaLand Logistics [ALLHC 1.90 ?0.5%; 72% avgVol] [link] teased its H1/24 financial results of P2.6 billion in comprehensive revenue and P413 million in net income, implying P1.3 billion in Q2 revenue (up 55% y/y) and P203 million in Q2 net income (up 26% y/y). ALLHC noted “healthy demand” for industrial lots leading to P1.7 billion in H1 sales, and revealed its warehouse leasing revenues rose 14% to P379 million thanks to new additions and higher utilization rates. ALLHC said that its cold storage segment revenues increased 8% to P92 million thanks to the addition of its ALogis Artico Santo Tomas facility and “higher average rent”.

MB BOTTOM-LINE: Approximately half of the press release was dedicated to ALLHC’s warehouse and cold storage business, which is a good sign but ultimately part of the frustration that I feel for this company. I love to see local players trying to build a viable logistics network, and ALLHC appears to be doing what it can to chip away at the massive leads that the incumbent private players have on its relatively tiny portfolio, but the solid work that the company is doing in this space is simply a rounding error compared to the ?1.7 billion in H1 income that it earned just by selling some industrial lots. I hope that ALLHC recognizes what could be done with a structure that is dedicated to the logistics business.

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