Conglomerate Aboitiz Equity Ventures Inc. posted a 29-percent year-on-year decline in its first quarter net profit to P4.9 billion, due to lower earnings contribution from its power and banking businesses.
Excluding non-recurring items, AEV’s core net income in the first three months amounted to P4.4 billion, 20 percent lower than the level last year.
AEV booked a first-quarter non-recurring income of P470.6 million as the company booked gains amounting to P634 million from the sale of some assets. However, this was partially offset by the foreign exchange losses on the revaluation of consolidated dollar-denominated loans and placements amounting to P163.4 million.
Out of AEV’s total earnings contributions, power accounted for 73 percent while the income contribution of the banking, food and property units were at 16.6 percent, 7.7 percent and 2.8 percent, respectively.
Energy unit Aboitiz Power Corp. posted a 9 percent year-on-year decline in first quarter profit to P3.2 billion. The power generation business declined by 10 percent on higher fuel costs brought about by the implementation of the geothermal resource sales contract for the Tiwi-Makban project. AEV said its generation group’s income contribution for the quarter could have been higher if not for the expiration of the Pagbilao power plant’s income tax holiday.
On the other hand, the power distribution group’s income contribution for the first quarter decreased by 17 percent as the increase in sales was not enough to offset higher costs registered by Visayan Electric Co. Inc., Davao Light & Power Co. Inc. and Cotabato Light & Power Co. during the period. The group’s year-to-date gross margin on a per kilowatt-hour basis declined to P1.53 from P1.63 a year ago.
Meanwhile, Union Bank of the Philippines’ income contribution for the first quarter decreased by 59 percent year-on-year to P730.6 million.
AEV’s non-listed food subsidiary, Pilmico Foods Corp., on the other hand, posted a 4 percent year-on-year increase in first quarter income contribution to P338.6 million. This was attributed to the strong performance of the flour division, which registered a net income of P185.6 million year-on-year on improved margins. The farms business grew by 19 percent on higher sales volume and average selling price. The feeds division was muted by higher input costs.
Property unit Aboitiz Land Inc. grew its net income by 181 percent year-on-year to P121.1 million. The growth was due to the 100 percent consolidation of Lima Land Inc., resulting in the industrial segment becoming its main revenue contributor.