Ayala Corporation is maintaining a steady course through a turbulent global landscape, signaling confidence in its ability to navigate supply chain disruptions and escalating costs fueled by ongoing Middle East tensions.
During the conglomerate’s recent Annual Stockholders’ Meeting, Chairman Jaime Augusto Zobel de Ayala addressed the complexities facing the Philippine economy.
While acknowledging the headwinds, he remained optimistic about the group’s trajectory.
“The impact of the oil supply shocks has affected some of our businesses more than others. High unit costs are an issue. We are also seeing cost pressure on the foreign exchange side as some of our businesses have raw materials inventory and liabilities pegged against the US dollar and other foreign currencies,” Zobel de Ayala stated.
Echoing this sentiment, Ayala President and CEO Cezar Consing confirmed that all business units are projected to remain in growth territory. To adapt to the current climate, however, the conglomerate is recalibrating its financial strategy.
Ayala plans to scale back its capital expenditures to approximately ₱180 billion, a reduction from the previously targeted ₱220–230 billion, aligning the budget with 2025 spending levels.
“This situation could be a challenge, but I think we’ll get through it. All our businesses will be resilient,” Consing remarked.
Despite the shadow of high inflation, the company is not halting its momentum.
Ayala is moving forward with expansion in the retail and consumer sectors, bolstered by a string of high-profile international alliances with brands such as BYD, Anko, Makro, and A.P. Moller.
Consing admitted that sustained inflation poses a risk to consumer appetite, particularly in the property and retail markets.
He expressed specific concern for the average Filipino consumer’s purchasing power.
“I’m more worried about the impact it has on everyday households, what it does to the vast goods they buy,” he noted.
Moving forward, Ayala’s roadmap prioritizes “disciplined growth.” The company is shifting its focus toward fortifying its balance sheet, enhancing cash flow, and managing costs through strategic partnerships to insulate itself from further external shocks.