AYALA-LED Integrated Micro-Electronics, Inc. on Wednesday reported higher first-quarter profitability, which it attributed to improved margins, cost discipline and operational efficiencies despite flat revenue growth.
“We are pleased with the steady increase in profitability that we have achieved over the last two years,” CEO Louie Hughes said.
“We are now able to remain competitive while generating sustainable value for our stakeholders,” he added.
The company said net income rose to $4.5 million from $3.7 million a year earlier, while revenues were unchanged at $220 million.
IMI said the stable top line reflected a steady pipeline, although some mobility-related segments remained weak because of ongoing softness in the global electronics industry.
Gross profit margin improved to 9.7 percent from 8.7 percent, supported by higher factory utilization, better pricing discipline, and manufacturing footprint optimization.
Earnings before interest, taxes, depreciation and amortization, meanwhile, increased to $15.5 million from $14.6 million, driven by stronger operating leverage and lower overhead costs.
Financing costs also declined, contributing to the improvement in net income.
The company attributed the results to its ongoing multi-year transformation program, which includes consolidation of its global manufacturing footprint, cost reduction initiatives, and efforts to improve financial resilience.
IMI noted it continued to strengthen its balance sheet through debt reduction, resulting in lower interest expenses and improved capital structure efficiency.
The company said geopolitical tensions, including developments in the Middle East, have not materially affected operations but noted that it continues to monitor global supply chain risks, particularly in logistics, component availability, and lead times.
IMI’s share price rose by 16 centavos to close at P4.13 each on Wednesday.