Conglomerate Aboitiz Equity Ventures Inc. posted a nine-month net profit of P11.9 billion, 19 percent lower year-on-year due to the decline in earnings from its power and banking businesses.
Taking out extraordinary items, AEV’s core net income amounted to P12.5 billion, which was 10 percent lower than the level last year. The conglomerate incurred a non-recurring loss of P623.2 million resulting from the revaluation of the dollar-denominated liabilities and placements of its power unit versus the gain of P379.6 million booked last year, the conglomerate disclosed to the Philippine Stock Exchange on Wednesday.
For the third quarter alone, consolidated net income amounted to P4.1 billion, a decrease of 15 percent year-on-year while core net profit amounted to P4.6 billion, down by 11 percent year-on-year.
“Despite the slight slide in profits, our strategic growth plans – whether at home or abroad – remain intact. Our recent foray into infrastructure through LRI (Lafarge Republic Inc.), for instance, represents an excellent opportunity to be involved in [nation-building] and participate in the robust growth expectations in that sector,” AEV president and chief executive officer Erramon Aboitiz said.
“We believe progressive infrastructure is what will propel our country’s economic growth and what will ultimately lead to a better life for our fellow Filipinos. Overseas, we remain on the lookout for growth opportunities that fit into our investment parameters, ensuring that will deliver value to our stakeholders,” he added.
READ: Aboitiz enters money remittance business | Aboitiz power unit seeks connection to Luzon grid
For the first nine months, flagship Aboitiz Power Corp. (AboitizPower) reported an income contribution of P9.4 billion, 7 percent lower year-on-year. When adjusted for non-recurring items, the unit recorded a slower 3 percent year-on-year decline in its earnings share to P10 billion.
Income contribution of banking arm Union Bank of the Philippines from January to September declined by 40 percent year-on-year to P1.4 billion. The decline was essentially due to trading losses coupled with the increase in operating expenses.
AEV’s non-listed food subsidiary, Pilmico Foods Corp. grew net profit by 46 percent year-on-year in the first nine months to P1.4 billion. The growth in income of both the feeds and flour businesses was able to boost the food group’s income contribution for the period despite the decline in the contribution of the farming business.
Property arm AboitizLand Inc. (AboitizLand) saw a 56 percent year-on-year drop in its net income contribution for the nine-month period to P249 million. Lower sales in Lima Land industrial lots and higher manpower cost due to organizational expansion resulted in a 20 percent decrease in consolidated revenue amounting to P1.7 billion.
Meanwhile, AEV’s newly acquired companies – Western Union remittance agent network PETNET Inc. and cement manufacturer Lafarge Republic Inc. (LRI, to be renamed Republic Cement & Building Materials Inc.), which only began contributing last June and mid-September of the year, respectively, posted income contributions of P14.7 million and P22.4 million for the period in review. CDG
RELATED STORIES
Group launches Water Alliance to address looming supply problem
Sy, Zobel, Aboitiz among Asia’s top 50 richest families