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AC Health operates a network of pharmacies, clinics, and hospitals across the Philippines.
Ayala Corp., under the leadership of billionaire Jaime Zobel de Ayala and his family, is intensifying its healthcare initiative AC Health with the goal of achieving a $2 billion equity valuation by 2035, which marks a significant increase from its current valuation.
The strategy for this ambitious growth involves expanding its network of hospitals, clinics, and pharmacies through both organic growth and acquisitions in pivotal regions throughout the Philippines, as articulated by AC Health CEO and President Paulo Borromeo.
“Our vision is to establish a sustainable healthcare group,” stated Borromeo, who has been steering the venture since its inception in 2015. Speaking during a media briefing, he emphasized that while AC Health has sufficient capital to support its expansion for the next couple of years, it may seek additional equity from investors for acquiring hospitals.
Currently, AC Health constitutes roughly 4% of Ayala Corp.’s net asset value (NAV), which Borromeo noted translates to approximately 29 billion pesos (around $515 million) based on Ayala’s NAV of 726 billion pesos at the end of 2024.
The healthcare initiative is among several ventures cultivated by Jaime Augusto Zobel de Ayala and his brother Fernando since they took over Ayala Corp. from their father Jaime in 2006. AC Health has joined the ranks of the brothers’ successful enterprises, which include telecom giant Globe Telecom, the fintech operator Mynt valued at $5 billion, and the renewable energy powerhouse ACEN. Recently, Ayala Corp. has also ventured into electric and hybrid vehicles through its AC Mobility initiative.
Ayala Corp. president and CEO Bong Consing indicated that about 15 billion pesos have been invested in AC Health since its launch in 2015. The company has experienced rapid growth in the past two years, including the opening of an oncology center, and Consing anticipates that AC Health will soon achieve profitability given the increasing demand for quality healthcare services.
According to a recent stock exchange filing, AC Health’s revenue increased by 10% to 9.4 billion pesos in 2024, driven largely by a remarkable 22% growth in its clinics and hospitals. Despite this topline growth, the company faced a larger net loss of 610 million pesos due to asset impairment charges linked to the online consultation platform KonsultaMD and the financial demands related to the establishment of the new cancer hospital.
Excluding the initial costs associated with the cancer facility, Borromeo revealed that AC Health has been net income positive since 2023, adding that the company has maintained a positive EBITDA since 2021.
Starting with a decade-old investment in Generika Drugstore, Borromeo has successfully expanded AC Health’s portfolio to include 880 drugstores, functioning through two pharmaceutical companies and two licensed drug importers distributing over 1,178 medications. The organization also operates a network of 236 corporate and multi-specialty clinics, alongside six hospitals under the Healthway Medical banner.
In the coming three years, Borromeo aims to expand AC Health’s presence to 1,150 retail pharmacies, 300 clinics, and 10 hospitals. He highlighted that opportunities for hospital acquisitions still exist, especially amidst competition from other conglomerates engaging in healthcare.
While AC Health’s expansion faces competition from industry players like Manuel Pangilinan-led Metro Pacific Investments Corp., which operates 27 facilities, and Mount Grace Hospitals with its network of 24 facilities, Borromeo remains optimistic. He noted that AC Health’s strategic establishment of healthcare facilities and pharmacies, coupled with a robust digital platform, places it well-positioned to leverage industry opportunities. “Our momentum has significantly accelerated in the last four to five years,” he stated, mentioning that the pandemic was a turning point that spurred growth. “Initial years involved experimentation with pharmacies and diagnostic clinics, but after 2019, we embarked on more substantial acquisitions.”
Founded in 1834 as a distillery by Jaime Zobel de Ayala’s grandfather, Ayala Corp. is the Philippines’ oldest conglomerate. Today, it extends its operations into banking, energy, logistics, utilities, and real estate, positioning the Zobel de Ayala family among the wealthiest in the country with a net worth of $2.6 billion.
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