Aboitiz nets P10.5B

POWER-led conglomerate Aboitiz Equity Ventures Inc. grew its first semester net profit by 34 percent year-on-year to P10.5 billion on the back of higher earnings contribution from its power and banking businesses.

Flagship unit Aboitiz Power Corp. ended the first half of the year with an income contribution to AEV of P7.7 billion, up by 24 percent year-on-year as it unlocked higher profits from power generation and distribution.

Banking arm Union Bank of the Philippines and subsidiaries posted P1.9 billion of income contribution to AEV, surging by 121 percent year-on-year due to the growth in core recurring income.

On the other hand, earnings from the food business under the Pilmico group were flat while the earnings from the real estate business AboitizLand declined.

The power business thus accounted for 67.1 percent of earnings, followed by banking which had a share of 16.8 percent. Food, infrastructure and real estate businesses accounted for 7.8 percent, 7.6 percent and 0.7 percent, respectively.

“Our two-pronged strategy of organic growth in our existing businesses and diversifying our income streams from our fifth leg—infrastructure-related businesses—is on track and paying off. We are very pleased with the strong contribution of our cement business and the prospects of infrastructure moving forward,” AEV president Erramon Aboitiz said in a press statement.

AEV’s fledgling infrastructure unit Republic Cement and Building Materials Inc. (RCBM) posted an income contribution of P869 million for the six-period. It started contributing mid-September last year./rga