AyalaLand Logistics FY24 profit: P701M (up 10%)

AyalaLand Logistics [ALLHC 1.58 ?1.3%; 83% avgVol] [link] teased a FY24 net income of P701 million, up 10% from its FY23 net income of P636 million, driven by a 48% increase in consolidated revenues to P5.2 billion. The industrial lot sales segment of ALLHC’s business sold P3.3 billion worth of property, up 26%, and the leasing segment earned P1.8 billion in revenues, up 6%. ALLHC splits its leasing segment into three subsegments (warehouse, cold storage, and commercial), and between these, the warehouse subsegment demonstrated the most revenue growth at +15% (P761 million). The commercial leasing subsegment grew revenues by 5% to P919 million. The only subsegment to lose ground was cold storage, which fell 7% to P164 million. The company expects its warehouse and cold storage segments to grow in FY25 thanks to the “addition of new sites and facilities.”

MB BOTTOM-LINE:  I can’t tell if I “hate to love” or “love to hate” reading ALLHC’s reports. I have a deep respect for the Ayala Group’s management of its assets (except for Anvaya Cove -- don’t get me started!), but as an investor who has had a desire to make PSE-based targeted bets on logistics, ALLHC has never been attractive despite its growing portfolio of exactly what I want to buy. As the numbers show, the stock is dominated by raw land sales. Even in the leasing subsegments, the largest one there is commercial which is just a bunch of malls and non-logistics stuff. I’ve been asking, begging, and pleading for ALLHC and the Ayala Group to do something specific and targeted on logistics (particularly cold storage) for a very long time. Still, for reasons that are beyond me, the group doesn't seem interested in putting in the time and money needed to consolidate the industry and build a foundational brand. I suspect that ALLHC’s doubling of its cold storage capacity is behind the drop in revenues, but I’ll have to wait to read its full Annual Report to confirm.