AyalaLand Logistics Q3 profit: P205M (up 1294%)

AyalaLand Logistics [ALLHC 2.11, up 5.5%; 343% avgVol] [link] posted a Q3 net income of P205 million, up 1294% y/y from its Q3/23 net income of P14.7 million, and up 1% q/q from its Q2/24 net income of P202 million. On a 9M basis, ALLHC reported a 90% increase in consolidated revenue to P4.0 billion, with an associated 75% increase in net income to P618 million. ALLHC’s logistics component saw its revenue increase 13% to P719 million, with an 11% increase in dry warehousing revenue to P566 million and a 19% increase in cold storage revenue to P153 million. ALLHC said that it expects to complete Phase 1 of its ALogis Mabalacat warehouse facility and cold storage which would add 7,700 pallet positions of dry storage and 5,000 pallet positions of cold storage to ALLHC’s portfolio. The company said that construction is “also in full swing” for Phase 2 of the dry warehouse component of the facility, which will result in an additional 18,000 sqm (~7,000 pallet positions) of capacity.

MB bottom-line: I’m losing hope that the Zobel Family has the organizational will to consolidate the domestic logistics industry. My hopes had been raised when AC Logistics (a subsidiary of Ayala Corp [AC 710.00, up 2.9%; 110% avgVol]) hired Erry Hardianto as CEO, given his extensive hard logistics background and the disclosure’s insistence that he joined the team with a mandate to “manage, grow, acquire, and transform complex logistics operations.” (MB link) My hopes were at an all-time high when ALLHC’s president said the company wanted to be a “major player”, but I began to get worried when I read that ALLHC considered its landbank to be a big asset to leverage in its dreams of becoming more prominent. The “slowly build out organically on the margins of the wet and dry logistics industry” is not a winning strategy, nor one that AC/ALLHC has shown to be all that adept in pursuing. No, the clear advantage the Zobel Family has is in its access to the capital needed to consolidate the industry by buying up one or more of the existing private firms that dominate the industry. It’s hard to tell if AC or ALLHC are trying to do this, but so far Mr. Hardianto has had a quiet first four months on the job and the landbank reference by the ALLHC president makes me question the family’s willingness to take the industry in a bold direction. The “margins” in logistics are not on the margins. 

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